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The SEC and the CFTC’s Market Participants Division both acted on Sept 17, creating conditional pathways for new technology to connect with regulated US markets. Two days earlier, the CLARITY Act failed to advance in the Senate. The 49-50 cloture vote fell short of the 60 votes required. These actions do not replace legislation, but address specific areas while broader rules remain stalled. The SEC issued its “Innovation Exemption,” a five-year conditional order for qualifying Tokenized Securities Venues, or TSVs. It allows tokenized NMS stocks to trade through permissioned AMMs and liquidity pools without TSVs being treated as exchanges. It also grants conditional dealer relief to certain liquidity providers. Key conditions: • Tokens must provide the same rights as equivalent traditional shares • For third-party tokenization, issuers must receive notice and a chance to object • TSV smart contracts must be public, auditable and deployed on public, permissionless ledgers • Synthetic products offering only price exposure are excluded • Eligible symbols and trading volumes are capped The SEC is also seeking public comment. Separately, CFTC Staff Letter 26-25 extends a no-action position to qualifying passive software providers. Subject to its conditions, staff would not recommend enforcement solely for failure to register as an introducing broker, or associated person, when software passively connects users to registered derivatives markets. This is not a blanket exemption. Providers cannot control user assets, solicit or recommend trades, or exercise discretion over orders. The position lasts until relevant CFTC rules or guidance take effect. Unlike the GENIUS Act, which became federal law in July 2025, neither action is a statute. Temporary relief can open lanes faster than Congress, but future leadership can revise them. Will these pathways drive adoption of tokenized equities and regulated derivatives access, or will users wait for permanent legislation? #SECCFTCOnchainRules