With the CLARITY Act advancing out of the Senate Banking Committee, SEC Chair Paul Atkins is expected to introduce an "innovation exemption" framework aimed at tokenized stock trading. The initiative would allow regulated Alternative Trading Systems (ATSs) to support 24/7 on-chain equity markets. Market activity is already building. RWA.xyz data shows distributed value at $33.7 billion, up 21% over the past 30 days, while monthly transfer volume reached $3.03 billion. The figures give regulators a live market backdrop as they move from policy debate to implementation. The SEC approach is not positioned as a rewrite of securities law. A joint staff statement dated January 2026 from three SEC divisions reiterated that tokenization does not change what a security is. Disclosure, custody standards, and investor protections remain in force whether trading occurs on a traditional ledger or a blockchain. A key plumbing layer is the DTC Pilot: a three-year no-action relief granted to DTCC's Depository Trust Company (DTC) in December 2025. The pilot is limited to highly liquid, DTC-eligible securities and requires real-time regulatory observability and detailed participant reporting. Those requirements would extend to any ATS connecting to the same settlement rails. In March 2026, the SEC approved a Nasdaq rule change that permits trading tokenized versions of DTC-eligible equities and ETPs under the same ticker, market rules, and economic rights as the underlying instruments. Reporting cited by Bloomberg suggests Atkins' plan would broaden the model to cover two distinct categories: tokenized stocks issued directly by issuers (or on their behalf) and third-party tokenized stocks created without issuer affiliation. The distinction affects disclosure obligations, custody structures, secondary-market liquidity, and ATS design. On-chain stock activity is concentrated. RWA.xyz data indicates Ondo, built on Ethereum, represents about 60% of the on-chain stock market. Tokenized Circle Group stocks are valued at roughly $212 million, tokenized NVIDIA Corp. at $89.3 million, and tokenized Tesla Inc. at $85.4 million. Together, the three account for more than 25% of total tokenized stock value, spanning 266,000+ holders and 83,257 monthly active wallets. The legislative wildcard is whether the CLARITY Act can clear the Senate floor's 60-vote threshold. Republicans hold 43 seats, leaving supporters in need of at least 17 Democratic votes to overcome a filibuster. Polymarket currently prices the probability of a 2026 floor vote at 64%. If enacted, the CLARITY Act would shift primary oversight of crypto trading from the SEC to the CFTC, while explicitly keeping oversight of digital securities with the SEC. That jurisdictional boundary would shape which rulebook governs tokenized-equity ATS platforms, how margin and leverage standards are applied, and which regulator has enforcement authority over platforms such as Ondo. One scenario outlined by market watchers: if 17 or more Democratic senators support the bill and it passes in July 2026, the SEC's innovation-exemption framework could roll out alongside new ATS licensing. In that case, tokenized stock distributed value, cited at $1.43 billion, could accelerate toward $5 billion by year-end as institutional platforms gain clearer regulatory cover. Traditional venues are already positioning. NYSE has tapped Securitize to develop tokenized securities markets, and at least one additional U.S. exchange has signaled plans for round-the-clock tokenized trading with stablecoin settlement. Even without congressional action, Nasdaq's pilot-style model may not remain an outlier. Overall, the SEC's stance under Atkins is described as moving toward structured engagement rather than an enforcement-first posture. The regulatory framework is in motion; the key uncertainty remains whether the Senate can produce the 17 Democratic votes the market cannot yet confidently forecast. Source: RWA.xyz. Originally published by Cryptonews.

Bank of America has submitted a new Form 13F-HR to the U.S. Securities and Exchange Commission, outlining its reportable equity holdings for the first quarter of 2026. The filing indicates exposure to cryptocurrency-linked exchange-traded funds and public companies with meaningful ties to crypto. The disclosure appears in the bank's quarterly 13F-HR report, a requirement for institutional investment managers with more than $100 million in qualifying assets. Bank of America's report reflects positions held as of the end of Q1 2026. Form 13F covers long positions in U.S.-listed equities and certain equity-linked instruments, including ETF shares. In the crypto context, the filing points to two broad types of exposure: holdings in spot or futures-based cryptocurrency ETFs, and stakes in publicly traded firms with significant crypto-related businesses. Since spot Bitcoin ETFs began trading in January 2024, large financial institutions have increasingly reported positions in these products through their quarterly 13F disclosures. Bank of America's latest filing follows that trend. Market participants typically treat 13F data as a snapshot rather than a clear signal of conviction. Reported positions can include holdings tied to client accounts in wealth management and advisory programs, not just the bank's proprietary activity. The filing does not indicate whether the exposure reflects balance-sheet positioning or client-driven allocation decisions. Investors watch these disclosures closely as institutional participation in digital asset products expands. Public 13F filings remain one of the more transparent tools for tracking how major firms are positioned, with each quarter adding evidence on whether exposure is rising, falling, or stable across the industry. The broader backdrop includes other signs of institutional engagement, from state-level moves such as Minnesota allowing banks to offer crypto custody services, to corporate treasury strategies that have put Bitcoin on balance sheets—including reports that Strategy has purchased billions in Bitcoin as a reserve asset. At the same time, decentralized trading platforms continue to attract both retail and institutional interest as alternatives to traditional venues. Additional details on Bank of America's positions—including specific fund names and share counts—can be accessed via the bank's regulatory filings page and the SEC's EDGAR database. Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets involve significant risk. Conduct your own research before making any decisions.

SBI Group is working on a combined Bitcoin and XRP exchange-traded fund for listing on the Tokyo Stock Exchange, with an ambition to reach as much as $32 billion in assets under management within three years of launch, according to reports. Japan's Financial Services Agency is also said to be re-evaluating crypto assets as formal financial instruments, signaling a shift in how major Asian banks and brokerages view digital assets: increasingly as institutional-grade products rather than speculative sidelines. Why Asia matters for XRP XRP's traction in Japan and South Korea is closely tied to the region's rate backdrop. Years of near-zero or negative interest rates in Japan left savers with limited returns on deposits, pushing many retail investors toward higher-yield, higher-risk alternatives$—first retail FX trading, and more recently, digital assets. South Korea has seen a similar dynamic, as modest domestic returns encouraged households to seek yield beyond traditional markets. Institutional ties and mainstream appeal SBI Holdings, one of Japan's largest financial groups and a long-time supporter of XRP, has helped place the token at the intersection of mainstream finance and the crypto market. For both retail and institutional investors, that association adds an element of credibility$—not fully conventional, but not merely speculative. Ripple's Asia-Pacific vice president, Fiona Murray, has cited this history in explaining XRP's regional popularity, saying that in markets such as Japan and Korea, retail holders often treat XRP as a store of value in prolonged low-return environments. What XRP offers Beyond perception and partnerships, XRP's appeal also rests on practical features: near-instant settlement and low transaction fees. Those attributes address common frustrations with slow, costly bank transfers and support payment and cross-border transfer use cases, keeping the token relevant to both retail traders and financial firms testing crypto-based utilities. What it could mean A Bitcoin-XRP ETF on the Tokyo Stock Exchange backed by a major financial group would mark a meaningful step toward broader crypto adoption in Asia. If SBI's $32 billion AUM target proves achievable, it would underscore strong demand from both retail and institutional investors and could intensify regulatory engagement across the region, particularly as Japan's FSA considers classifying crypto as financial instruments. The initiative also reflects a wider trend: Asian financial institutions and regulators moving gradually from caution toward more active participation in digital assets, reshaping how crypto is integrated into traditional markets.

Minnesota Governor Tim Walz has signed HF 3709 into law, clearing the way for state-chartered banks and credit unions to offer cryptocurrency custody services under a formal regulatory framework. The legislation, which passed the state legislature with bipartisan support, takes effect on August 1, 2026. Oversight will sit with the Minnesota Department of Commerce, and the rules apply to the custody of cryptocurrencies such as Bitcoin. Under the new law, banks and credit unions may provide virtual asset custody in a nonfiduciary capacity, including safeguarding customers’ digital assets and managing associated private cryptographic keys. Institutions must adopt internal policies covering cybersecurity, risk management, business continuity planning, and operational controls. The law also requires customer digital assets to be segregated from an institution’s own holdings and bars banks or credit unions from treating those assets as their property. Before launching custody operations, an institution must notify the Minnesota Commissioner of Commerce in writing at least 60 days in advance, including details of its cybersecurity systems and risk management framework. Minnesota government data from May 2025 lists 240 commercial insured banks in the state with about $128 billion in assets, along with 82 member-owned credit unions operating under the Minnesota Credit Union Network. HF 3709 follows another digital-asset measure Walz signed on May 5 that banned cryptocurrency kiosks and ATMs statewide after reports of scam-related incidents involving residents. The move comes as crypto-focused firms seek federal banking and custody approvals. Earlier this month, Payward, the parent company of Kraken, said it had applied to the Office of the Comptroller of the Currency for a national trust company charter centered on digital asset custody. Disclaimer: This material is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses arising from the use of referenced content, products, or services. Readers should use caution before taking action related to any company.

The U.S. Securities and Exchange Commission is expected to roll out an "innovation exemption" aimed at tokenized stocks, establishing a framework for trading digital versions of traditional securities. The initiative could have far-reaching implications for U.S. equity-market structure as the Trump administration continues to ease crypto regulation, Bloomberg reported.

Momentum is building for the CLARITY Act after it cleared the Senate Banking Committee last week by a 15"9 vote. Gemini now expects the full Senate to take up a floor vote within the next 30 days. Following the committee advance, Galaxy Research raised its estimate for the bill becoming law in 2026 to 75%. If lawmakers keep moving at the current pace, Galaxy Research head of research Alex Thorn said the legislation could reach the President's desk for signature during the week of August 3. White House crypto adviser Patrick Witt said passage would deliver roughly 90% of what the crypto industry needs. What still needs to happen Dom Kwok of EasyA outlined four steps between the committee vote and enactment: 1) The Senate Banking Committee text must be merged with the Senate Agriculture Committee's framework, which addresses CFTC jurisdiction. 2) The consolidated bill must pass the full Senate, requiring 60 votes. 3) Because the Senate version has been significantly amended and expanded from the bill the House passed in July 2025, the two chambers must reconcile differences and then approve an identical final text. 4) The President signs the bill into law. Lummis tempers expectations Sen. Cynthia Lummis, a key architect of the measure, struck a cautious note after the committee vote. "Nobody is popping the champagne quite yet," she said, adding that there remains substantial work ahead. On timing, she said she would like to see a floor vote in June, but called that timeline "pretty optimistic." The White House has been aiming for a July 4 signing. With reconciliation still required, Galaxy Research now views the week of August 3 as the more realistic target. What the bill does The CLARITY Act would set a comprehensive regulatory framework for digital assets, define decentralisation at the protocol level, bolster consumer protections, and address antimoney laundering requirements. It also delineates SEC and CFTC authority over digital assets and would permanently classify Bitcoin and Ethereum as nonsecurities. "The CLARITY Act provides the necessary regulatory clarity for the crypto industry and Wall Street to build the next generation of financial products and architecture," Lummis said. Tags: Clarity Act, News Updates, Crypto news

India's Parliamentary Standing Committee on Finance is scheduled to meet Binance, WazirX and ZebPay tomorrow as part of its discussions on cryptocurrency regulation.

CoinDesk, May 19 — The U.S. Securities and Exchange Commission is preparing an "innovation exemption" that could permit tokenized stock trading. In ETF markets, Bitcoin ETFs posted a one-day net outflow of $648 million, prompting analysts to flag softer demand. BlackRock's Ethereum ETF recorded a net outflow of 26,269 ETH on May 18, while trading volume reached $500 million. Separately, spot ETFs tied to SOL and XRP saw net inflows. On corporate and protocol developments, Michael Saylor bought $2 billion worth of Bitcoin. Echo Protocol disclosed a $76 million EBTC minting vulnerability. Bitcoin mining firms are increasingly pivoting toward powering AI infrastructure, according to Bernstein. Swan Bitcoin is facing nearly $1 billion in litigation linked to Prime Trust's bankruptcy. Bloomberg reported a sharp increase in crypto industry security spending. Citi warned that Bitcoin faces long-term quantum-computing risks, estimating that 6.9 million BTC are already vulnerable.

Minnesota has passed a new law authorizing banks and credit unions to provide certain digital-asset custody services, after Governor Tim Walz signed House File 3709 (HF 3709). The bill was delivered to the governor on May 12, 2026, and is set to take effect on Aug. 1, 2026. Under the new statute, Minnesota-chartered banks and credit unions may hold cryptocurrency on behalf of customers in a custody role similar to safeguarding cash or important documents. The law also permits institutions to control customers' private keys—credentials needed to access crypto wallets—provided they give the state commissioner at least 60 days' notice before launching the service. HF 3709 requires any credit union offering virtual-currency custody to operate in a safe and sound manner and to maintain written policies and procedures covering risk management, internal controls, cybersecurity, business continuity, and compliance. Customer crypto must be segregated from the institution's own assets, preserving customers' legal ownership even if the bank faces financial distress. Institutions may partner with third-party crypto custodians, but they remain subject to regulatory supervision. State regulators will conduct routine examinations and oversee custody operations. In March, Representative Bernie Perryman said HF 3709 is intended to allow Minnesota-based financial institutions to keep pace with customer demand rather than pushing residents toward unregulated, out-of-state, or offshore providers. The measure could affect a broad swath of the state's financial sector. Minnesota data show that as of May 2025 the Minnesota Credit Union Network included 82 member-owned credit unions, and the state had 240 commercially insured banks with roughly $128 billion in assets. Minnesota joins states such as New York, Wyoming, and Virginia that have enacted similar frameworks for bank-provided crypto custody. At the same time, the state is moving to restrict cryptocurrency ATMs and kiosks. Walz also signed Senate File 3868 (SF 3868), a bipartisan bill that would ban ATMs statewide beginning Aug. 1. Final Summary: Walz signed HF 3709, enabling crypto custody services by banks and credit unions starting Aug. 1, 2026. Minnesota aligns with New York, Wyoming, and Virginia on similar legislation.