The regulatory proposal for an "innovation framework" has gained attention, yet Section 505 of securities law presents a structural constraint. The statute explicitly prohibits the SEC from waiving or modifying registration requirements based on whether assets are blockchain-based, nor can it grant exemptions solely on this technical distinction. This legal ceiling has significant implications for how traditional finance institutions and industry groups approach the regulatory landscape. The interplay between innovation initiatives and existing statutory boundaries remains a critical tension point in the current policy debate.