SEC grants temporary exemption for tokenized US stock trading
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The US Securities and Exchange Commission (SEC) approved a temporary innovation exemption permitting limited trading of tokenized US stocks on certain onchain venues called Tokenized Securities Venues (TSVs). This exemption allows permissioned trading of tokenized National Market System (NMS) stocks through automated market makers and liquidity pools, under strict requirements for transparency, recordkeeping, and technology safeguards, according to SEC Commissioner Mark Uyeda.
Why it matters
The SEC states that the innovation exemption is designed to be controlled and will provide the agency with valuable data to evaluate onchain securities trading. This data and experience are intended to inform the development of future, longer-term regulatory rules related to tokenized securities trading.
Key context
The SEC has been developing this temporary framework for months. In February, SEC Chair Paul Atkins indicated that the regulator was considering such an exemption allowing limited trading via automated market makers while creating permanent rules. The SEC is now seeking public feedback on the exemption framework, including data and case studies from live or test environments.
Key numbers and entities
The main entities involved are the US Securities and Exchange Commission (SEC), with Commissioner Mark Uyeda and Chair Paul Atkins referenced. The framework covers tokenized National Market System (NMS) stocks traded on Tokenized Securities Venues (TSVs). Specific data required from TSVs includes US dollar-denominated prices, trade sizes, timestamps, pool addresses, end-of-day pool sizes, and daily volumes.
What remains unclear
The source does not specify which specific tokenized stocks or platforms are immediately covered by the exemption, nor the exact symbol and volume limits that will apply. Details about how the SEC will enforce these safeguards or the timeline for transitioning to permanent rules have not been established.