SEC Greenlights Limited On-Chain Trading for Tokenized Stocks
The US Securities and Exchange Commission (SEC) has approved a temporary framework for limited on-chain trading of tokenized U.S. stocks.
The decision allows Tokenized Securities Venues to support permissioned trading through automated market makers and liquidity pools, while bringing buyers and sellers together through approved pools.
However, the SEC imposed limits on traded symbols and transaction volumes, requiring each venue to verify that tokenized shares carry the same rights as equivalent National Market System stock.
The framework also requires issuer protections for third-party tokenization, with a venue notifying the underlying issuer before listing tokens created by an unaffiliated third party, giving them an opportunity to object.