The US Securities and Exchange Commission has approved a temporary innovation exemption permitting limited trading of tokenized US stocks on certain onchain venues.
Under the framework, approved Thursday, Tokenized Securities Venues (TSVs) will be allowed to offer permissioned trading of tokenized National Market System (NMS) stocks. The exemption covers trading conducted through automated market makers and liquidity pools, subject to requirements including transaction transparency, recordkeeping, and technology safeguards, SEC Commissioner Mark Uyeda said.
TSVs must regularly publish US dollar-denominated transaction data, including prices, trade sizes, timestamps, pool addresses, end-of-day pool sizes, and daily volumes, according to the commission.
"The Innovation Exemption is designed to be controlled," Uyeda said, adding that symbol and volume limits will apply. He said the framework would give the SEC data to assess onchain securities trading and inform future rules.
The SEC is seeking public feedback on the framework, including data, case studies, and information from live or test environments.
The regulator had been developing the innovation exemption for months. In February, SEC Chair Paul Atkins said the agency was considering a temporary framework that would allow limited trading of tokenized securities through automated market makers while it develops longer-term rules.
