SEC Clears Path for On-Chain Stock Trading with Conditional Exemption

The US Securities and Exchange Commission (SEC) has granted conditional relief to Tokenized Securities Venues (TSVs), allowing them to trade certain tokenized U.S. stocks on-chain.

This move is intended to facilitate on-chain trading of selected equities, bringing parts of the capital markets onto blockchain networks.

The exemption comes with clear limits: tokenized securities must carry the same voting and dividend rights as traditional shares, and issuers can object to third-party tokenization.

The framework is designed to ensure that a token representing a real stock carries the rights attached to the underlying security, distinguishing it from synthetic versions.