SEC Advances Framework for Tokenized Securities Trading
The Securities and Exchange Commission (SEC) is advancing an 'innovation exemption' for tokenized listed securities that could enable 24/7 trading. The framework, which SEC Chair Paul Atkins described as a 'cabined framework to begin facilitating compliant onchain trading,' would allow market participants to trade tokenized securities on blockchains while the Commission develops long-term rules.
Atkins has been hinting at the exemption's release since April, calling it a 'forthcoming innovation exemption for tokenized listed securities' in a speech. However, the framework's legal form, effective date, and requirements remain unclear.
The SEC's Division of Corporation Finance, Investment Management, and Trading and Markets stated that a security's format and recordkeeping method do not affect federal securities laws, and every offer and sale must still be registered unless an exemption is available.