SEC Grants Five-Year Exemption for Tokenized Stock Trading

The US Securities and Exchange Commission (SEC) has granted five-year conditional exemptive relief to Tokenized Securities Venues (TSVs), allowing them to trade tokenized National Market System (NMS) stocks in a permissioned environment.

This exemption enables TSVs to connect buyers and sellers of tokenized NMS stock through automated market maker (AMM) liquidity pools, which let eligible participants interact and agree on trade terms.

The SEC outlined key conditions for TSVs to follow, including verifying the equities offered for on-chain trade offer holders' rights and privileges, providing written notice confirming third-party tokenization, and deploying smart contracts on a public blockchain.