SEC Greenlights On-Chain Trading of Tokenized US Stocks

The US SEC has issued an 'Innovation Exemption' order, allowing compliant tokenized securities venues (TSVs) to trade tokenized NMS stocks on-chain via permissioned AMMs for five years.

This move exempts certain platforms and liquidity providers from traditional exchange/dealer definitions, marking a significant regulatory easing. The market reacted positively with surges in related stocks like Securitize and Coinbase.

The exemption order aims to balance innovation with regulatory control by imposing key conditions, including issuer veto rights and exclusion of synthetic tokens.