SEC Gives Tokenized Stocks Five-Year Onchain Regulatory Runway

The Securities and Exchange Commission (SEC) has given tokenized U.S. stocks a five-year temporary regulatory pathway to trade on blockchain-based venues.

This move grants conditional exemptions from exchange and dealer-registration rules, effectively allowing eligible Tokenized Securities Venues to operate without being considered an exchange.

The exemption also gives automated-market-maker liquidity providers relief from dealer-registration rules, enabling them to provide liquidity in tokenized National Market System stocks.

Roninhood Markets Inc. (NASDAQ:HOOD) CEO Vlad Tenev welcomed the shift, saying 'Tokenization is coming to America.' He highlighted the benefits of instant settlement, 24/7 trading, and fractionalization by default, which he believes will have a positive impact on US innovation.