The SEC’s Innovation Exemption allows limited tokenized US stock trading on onchain venues with trading caps and transparency requirements.
The US Securities and Exchange Commission approved a temporary exemption allowing limited trading of tokenized US stocks on certain onchain venues.
Under the innovation exemption approved Thursday, Tokenized Securities Venues (TSVs) can offer permissioned trading of tokenized National Market System (NMS) stocks.
The exemption covers trading through automated market makers and liquidity pools, subject to requirements including transaction transparency, recordkeeping and technology safeguards, SEC Commissioner Mark Uyeda said. TSVs must also regularly publish US dollar-denominated transaction data, including prices, trade sizes, timestamps, pool addresses, end-of-day pool sizes and daily volumes.
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