SEC Approves Tokenized Stock Trading Exemption for US Markets

The US Securities and Exchange Commission (SEC) has granted a temporary exemption allowing limited trading of tokenized US stocks on certain online platforms. The innovation exemption, approved by Commissioner Mark Uyeda, will enable permissioned trading of tokenized National Market System (NMS) stocks through automated market makers and liquidity pools.

The exemption comes with requirements including transaction transparency, recordkeeping, and technology safeguards. 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.

The SEC is seeking public feedback on the framework, which is designed to be controlled with symbol and volume limits applying. The regulator aims to use this temporary exemption to gather data on onchain securities trading and inform future rules.