SEC approves temporary exemption for tokenized US stock trading
In brief
- SEC approved temporary exemption for tokenized US stock trading on onchain venues
- Tokenized Securities Venues must publish transaction data including prices, timestamps, and daily volumes
- Symbol and volume limits apply; SEC seeks public feedback on future rules
Framework and Requirements
Tokenized Securities Venues can offer permissioned trading of tokenized NMS stocks under the exemption. The structure covers trading through automated market makers and liquidity pools, but with guardrails in place.
TSVs operating under the exemption must regularly publish US dollar-denominated transaction data. This includes prices, trade sizes, timestamps, pool addresses, end-of-day pool sizes, and daily volumes. The requirement aims to create transparency for regulators and market participants monitoring onchain activity.
Symbol and volume limits will apply to the framework. These caps constrain the scope of trading permitted under the exemption, preventing unlimited onchain securities activity.
Regulatory Intent and Next Steps
SEC Commissioner Mark Uyeda framed the exemption as measured. "The Innovation Exemption is designed to be controlled," he said in a statement.
The SEC's approach here is deliberate. The framework would give the SEC data to assess onchain securities trading and inform future rules. Rather than issue permanent rules immediately, the regulator is gathering evidence from live and test environments.
The SEC is seeking public feedback on the framework, including data, case studies, and information from live or test environments. This input will shape how the agency approaches tokenized securities regulation going forward.
The exemption reflects a shift from the SEC's prior stance. In February, SEC Chair Paul Atkins said the regulator was considering a temporary framework allowing limited trading of tokenized securities through automated market makers. That consideration has now become policy.
