SEC Grants Tokenized Stock Venues Five-Year Exemption, UNI Surges 30%
The Securities and Exchange Commission (SEC) has granted tokenized stock venues a five-year test window. This exemption allows them to trade on public blockchains under certain conditions, such as permissioned trading and automated market makers.
UNI, the governance token of Uniswap, was one of the biggest winners in this move. It surged by about 30% from $8.76 to $8.83, with open interest rising to $591.4 million. Traders were not just buying the token but also borrowing to bet bigger.
The SEC's exemption is conditional and temporary, aimed at gathering data and studying the market structure. It does not approve Uniswap or other platforms as Tokenized Securities Venues. However, it describes a market structure that resembles crypto infrastructure, with automated market makers, liquidity pools, and on-chain settlement.