SEC Gives Green Light for Tokenized US Stock Trading on Online Platforms
The US Securities and Exchange Commission (SEC) has granted a temporary exemption for tokenized US stock trading on certain online platforms.
The Innovation Exemption, approved by SEC Commissioner Mark Uyeda, allows permissioned trading of tokenized National Market System (NMS) stocks through automated market makers and liquidity pools.
The exemption requires trading venues to maintain transparency in transactions, keep accurate records, and implement technology safeguards. Additionally, they must 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 aims to provide regulators with valuable insights into on-chain securities trading to inform future rules. The exemption was developed over several months, with SEC Chair Paul Atkins noting in February that the regulator was considering a temporary framework for limited tokenized securities trading while developing longer-term regulations.