#RegulationNMS

7 articles tagged #RegulationNMS — curated RWA tokenization coverage.

#SEC#TokenizedStocks#RWA#TokenizedEquities#TokenizedSecurities#BlockchainAssociation#BlockchainInfrastructure#CapitalFormation#DigitalAssetMarketClarityAct#EquityTokenization
Microsoft, Alphabet, Goldman object to tokenized stocks traded on OKXICE venue
Stocks

Microsoft, Alphabet, Goldman object to tokenized stocks traded on OKXICE venue

The OKXICE joint venture, a platform for trading tokenized U.S. stocks, has faced significant pushback as 16 major corporations formally objected to their shares being listed on the venue. Originally planning to launch with 63 symbols, the platform has been forced to remove 17 of them following these objections from companies including Microsoft, Alphabet, and Goldman Sachs. The venue intends to operate under a specific SEC tokenized securities venue (TSV) exemption granted in September, which allows for trading without adhering to traditional Regulation NMS requirements. While the initial wave of objectors focused on AI infrastructure firms like Broadcom and CoreWeave, the subsequent wave included a broader range of blue-chip entities. This development highlights a growing tension between traditional corporate issuers and the emerging infrastructure for tokenized equity trading. The silence from crypto-native firms like Coinbase and Circle suggests a potential divide in how different market participants view the legitimacy of these permissioned automated market maker pools. As the platform prepares for its launch, the increasing number of objections underscores the regulatory and reputational hurdles facing the tokenization of mainstream financial assets.

#SEC#TokenizedStocks#EquityTokenization
ledgerinsights.comPublished by source: Added: Oct 19, 20268.5
Tokenized stocks must carry the same shareholder rights, OKX US CEO says
Stocks

Tokenized stocks must carry the same shareholder rights, OKX US CEO says

OKX US CEO Roshan Robert asserted that tokenized National Market System (NMS) stocks must fully preserve the rights and privileges of traditional shares, encompassing investor interest, dividends, voting rights, and claims on assets during liquidation. This declaration coincides with the U.S. Securities and Exchange Commission (SEC) initiating a five-year exemption on September 17, allowing specific venues to trade tokenized U.S. listed stocks via permissioned automated market makers and liquidity pools. The SEC's order, set to expire on September 17, 2031, explicitly mandates that tokenized stocks provide equivalent shareholder rights, thereby excluding products that offer only synthetic price exposure. Robert emphasized that this parity is crucial for investor protection and to prevent the fragmentation of traditional and tokenized markets into products with differing rights. The exemption also requires a 30-day written notice to issuers before trading unaffiliated tokenized stock, enabling companies to object, a process exemplified by AMC Entertainment's challenge to a Robinhood product. While this SEC test is temporary, the insights gained over this period will inform potential adjustments to Regulation NMS and determine the permanence of tokenized stock regulations, marking a pivotal phase for the evolution of regulated tokenized equity markets.

#SEC#TokenizedStocks#RegulationNMS
crypto.newsAdded: Sep 23, 20267.5
SEC Publishes First Crypto Fundraising Rule in 90 Years; Tokenized Stocks Blocked by Reg NMS
Stocks

SEC Publishes First Crypto Fundraising Rule in 90 Years; Tokenized Stocks Blocked by Reg NMS

The U.S. Securities and Exchange Commission (SEC) has released the 'Regulation Crypto Assets' Notice of Proposed Rulemaking, marking the first formal fundraising framework for crypto-native projects in the agency's 90-year history. This proposal introduces two specific fundraising exemptions—up to $5 million over four years and up to $75 million annually—alongside a decentralization safe harbor that allows tokens to exit SEC jurisdiction once protocols become autonomous. While this provides clarity for crypto-native capital formation, a separate, highly anticipated 'innovation exemption' for tokenized stocks and bonds remains stalled. This delay is driven by structural conflicts between blockchain-based Automated Market Makers (AMMs) and the SEC’s Regulation NMS, specifically the Order Protection Rule (Rule 611). Major exchanges like Nasdaq, NYSE, and Cboe argue that AMM pricing mechanisms are incompatible with the National Best Bid and Offer requirements, creating a 'two-tier market' risk. Consequently, the integration of traditional assets like U.S. equities and Treasuries onto blockchain rails faces significant technical and political hurdles. With the Citi Institute projecting a $5.5 trillion tokenized-asset market by 2030, the inability to reconcile legacy equity plumbing with blockchain infrastructure threatens to delay institutional adoption. The SEC's ongoing struggle to balance market competitiveness with existing investor protection mandates highlights the friction between modernizing financial rails and maintaining established regulatory standards.

#SEC#TokenizedStocks#BlockchainInfrastructure
techtimes.comAdded: Aug 19, 20268.5
Blockchain Association backs SEC’s proposal to scrap outdated NMS rules, citing tokenization benefits
Stocks

Blockchain Association backs SEC’s proposal to scrap outdated NMS rules, citing tokenization benefits

The Blockchain Association has formally endorsed the SEC's proposal to repeal outdated Regulation NMS rules, arguing that these 2005-era mandates hinder modern market efficiency. By advocating for the removal of these legacy requirements, the industry group aims to clear regulatory hurdles that currently impede the integration of blockchain-based trading systems. The association contends that the existing framework has failed to achieve its stated objectives and instead creates unnecessary friction for digital asset innovation. This move is significant for the RWA market because it signals a concerted effort to align federal securities regulations with the operational realities of tokenized assets. Removing these barriers could facilitate more seamless liquidity and settlement processes for tokenized securities on public and private blockchains. The industry's push reflects a broader strategy to modernize market infrastructure to better accommodate the unique technical capabilities of distributed ledger technology. Ultimately, this regulatory shift could serve as a catalyst for increased institutional adoption of tokenized financial instruments by providing a clearer, more compatible legal environment.

#SEC#TokenizedSecurities#BlockchainAssociation
The BlockAdded: Aug 18, 20267.5
Superstate Hopes Tokenized Equities Trading is Unlocked
Stocks

Superstate Hopes Tokenized Equities Trading is Unlocked

Superstate is positioning itself as a leader in the tokenization of issuer-sponsored equities by utilizing a regulatory-first architecture that includes SEC-registered investment advisory and transfer agent capabilities. While the firm has developed integrations with automated market makers (AMMs) to facilitate onchain trading, these features remain inactive due to U.S. regulatory constraints, specifically the trade-through rule under Regulation NMS. This rule currently prevents the use of AMMs for equity trading by mandating that orders be executed at the best publicly displayed price across all venues. Industry experts and Superstate leadership suggest that if the SEC rescinds this rule or provides an innovation exemption, it would unlock significant liquidity for tokenized stocks. Beyond equities, Superstate is actively expanding its FundOS infrastructure, which has already been utilized by Invesco for a tokenized U.S. Treasury fund and by Coinbase Asset Management for the CUSHY stablecoin yield fund. The firm views tokenization as a way to extend the core advantages of ETFs, such as 24/7 creation and redemption processes, onto blockchain platforms. As competition intensifies from players like Securitize and Bullish, Superstate aims to leverage its deep Wall Street relationships to dominate the emerging market for onchain financial products.

#RWA#TokenizedEquities#Superstate
marketsmedia.comAdded: Aug 18, 20268.0
U.S. SEC to again delay 'innovation exemption' for tokenization amid Wall Street, White House concerns
Infrastructure

U.S. SEC to again delay 'innovation exemption' for tokenization amid Wall Street, White House concerns

The U.S. Securities and Exchange Commission has indefinitely delayed its anticipated innovation exemption, a policy designed to streamline the trading of tokenized securities on blockchain rails. This decision follows significant pressure from the White House and the Securities Industry and Financial Markets Association (SIFMA), who raised concerns regarding the proposal's legal foundation and potential market impact. The White House reportedly fears that unilateral regulatory relief could interfere with ongoing congressional negotiations surrounding the Digital Asset Market Clarity Act. Meanwhile, SIFMA has challenged the SEC's use of exemptions to implement structural market changes, arguing that such shifts require a formal, transparent notice-and-comment process. Industry participants are particularly concerned about how decentralized trading venues and automated market makers align with existing Regulation NMS requirements, specifically regarding best execution obligations. Despite the delay, major institutions like the DTCC continue to test tokenized infrastructure, reflecting the broader industry push to modernize financial markets. With Citi analysts projecting a $5.5 trillion market for tokenized assets by 2030, the regulatory uncertainty remains a critical bottleneck for institutional adoption. The SEC's cancellation of a planned Friday meeting underscores the ongoing tension between fostering blockchain innovation and maintaining established securities market integrity.

#SEC#TokenizedSecurities#DigitalAssetMarketClarityAct
CoinDeskAdded: Aug 13, 20268.5
Are We Finally Ready to Tokenize the World?｜Bankless
Infrastructure

Are We Finally Ready to Tokenize the World?｜Bankless

Securitize CEO Carlos Domingo projects the tokenized asset market will reach $1 trillion within three years, emphasizing a shift from synthetic derivatives to compliant, issuer-native tokenized securities. Following a $400 million SPAC merger and its NYSE listing under ticker SECZ, Securitize is scaling its infrastructure to bridge traditional financial regulations with blockchain efficiency. The company currently manages tokenized assets on Avalanche and Solana, navigating complex U.S. requirements like Regulation NMS by integrating off-chain price feeds to ensure National Best Bid and Offer compliance. Domingo identifies the primary industry bottleneck as a lack of mainstream consumption, noting that current friction—such as manual wallet management—limits adoption to crypto-native users. To achieve mass-market scale, the industry requires regulatory simplification, specifically the potential removal of NBBO constraints, and the development of robust on-chain spot and perpetual futures ecosystems. By providing regulated transfer agent, broker-dealer, and fund administration services, Securitize aims to capture a significant share of the projected $1 trillion market. This transition represents a fundamental move toward true on-chain ownership, which the company argues will eventually displace offshore synthetic alternatives.

#RWA#Securitize#TokenizedEquities
finance.biggo.comAdded: Jul 23, 20268.5

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