SEC Opens Door for Tokenized Stocks, XRPL's Native AMM Gets New Spotlight

The US Securities and Exchange Commission (SEC) has granted temporary relief to blockchain-based venues that want to trade tokenized U.S. stocks using automated market makers (AMMs). This decision, made on September 17, creates a framework for Tokenized Securities Venues to operate AMM-based markets under certain conditions.

The SEC's Innovation Exemption provides conditional relief from certain securities rules for eligible platforms. These venues can use permissioned systems and comply with specific investor protection requirements.

The XRP Ledger (XRPL) already has a native AMM, which was introduced through the XLS-30 amendment in March 2024. This makes XRPL's infrastructure more relevant to tokenized assets as regulators begin addressing on-chain securities markets.

While the SEC's decision does not specifically mention XRP or Ripple, it establishes a regulatory framework that contemplates AMM-based trading. If regulated tokenized equity markets eventually expand onto public blockchains, networks with existing AMM and DEX infrastructure could have an established foundation to build upon.