
U.S. SEC Issues Innovation Exemption Approving Trading Of Tokenized Stocks
The U.S. Securities and Exchange Commission has issued a five-year innovation exemption allowing Tokenized Securities Venues to trade tokenized National Market System stocks. This regulatory milestone enables platforms to utilize permissioned automated market makers and liquidity pools to facilitate 24/7 trading of traditional equities. To qualify, venues must ensure tokenized stocks grant holders identical rights to traditional shares and utilize auditable smart contracts on public, permissionless ledgers. The exemption imposes strict limits on trading volume and the number of symbols supported while requiring platforms to mirror trading halts from primary exchanges. This move signals a significant shift toward integrating digital asset infrastructure into U.S. capital markets. Major platforms like Coinbase, Robinhood, and Kraken are positioned to leverage this framework to expand their product offerings. By establishing clear operational conditions, the SEC aims to foster innovation while maintaining investor protections during this transition to on-chain trading.










