SEC Paves Way for Tokenized Stocks with Five-Year Exemption

The U.S. Securities and Exchange Commission (SEC) has introduced a five-year 'Innovation Exemption' to permit trading of tokenized U.S. stocks on approved venues.

This exemption allows Tokenized Securities Venues (TSVs) to facilitate trading of tokenized National Market System (NMS) stocks through blockchain-based infrastructure, while providing protections for investors and the marketplace.

The framework is aimed at modernizing U.S. capital markets and allowing regulated onchain trading for some equity securities, as stated by SEC Commissioner Paul Atkins.