SEC Hits Pause on 'Innovation Exemption' for Tokenization Amid Wall Street Pushback | CoinDesk Daily

**Sam Ewen** (0:00)
The SEC hits the brakes on tokenized stocks, and Tether finally opens its books after years of doubt. This is CoinDesk Daily.
RealFi, a smarter stablecoin backed by real world assets. Join the testnet now at realfi.co. The SEC is once again delaying its innovation exemption, the rule meant to fast track trading of tokenized securities on blockchain rails. The commission abruptly canceled a Friday open meeting where it was expected to share details with no new dates set. Two forces are behind the pushback. The White House worried the move could kick a hornet's nest while Congress is still negotiating the Clarity Act. And Wall Street's biggest trade group, Sifma, argued that changes this sweeping shouldn't come through an exemption at all. Tether says it has completed a full financial audit for the first time, delivering on a transparency promise it made for years.
KPMG, one of the big four, issued an unqualified opinion of Tether's 2025 books, meaning the numbers fairly represent its financial position. Auditors even physically counted and inspected the company's gold bars. The statement showed reserves exceeding liabilities by $6.8 billion.
That matters as USDT has swelled past $180 billion in market cap, making Tether a major buyer of US government debt. And JP Morgan quietly stopped providing banking services to PolyMarket late last year, according to the Financial Times. The bank told PolyMarket in October 2025 to find a new banking partner amid regulatory worries. PolyMarket has since moved to another lender. But JP Morgan hasn't fully walked away. The Wall Street giant invited PolyMarket CEO to a private client conference this year and is still angling to help underwrite any future IPO.
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