SEC (U.S. securities regulator) Commissioner Hester M. Peirce discussed the Innovation Exemption at SIFMA’s Digital Assets Conference in New York on September 23, 2026. The exemption consists of two time- and size-limited forms of relief intended to support trading in tokenized securities on crypto networks through automated market makers (systems that match trades using liquidity pools). On September 17, 2026, the SEC granted a five-year conditional exemption from certain securities-market requirements to qualifying blockchain-based venues handling certain National Market System stocks. The relief covers venues operating permissioned automated market maker liquidity pools and certain liquidity providers designated as Covered Firms. Peirce said the measure is intended as a bridge toward durable rulemaking and expressed a preference for tokenization to develop in U.S. markets rather than overseas. She also addressed financial surveillance, arguing that technology can improve detection of illegal activity while reducing the amount of personal information collected, and said Americans deserve both security and privacy.