SEC Approves Temporary Exemption for Tokenized US Stock Trading
- The SEC approved a temporary exemption for limited trading of tokenized National Market System (NMS) stocks.
- Tokenized Securities Venues (TSVs) can trade through automated market makers and liquidity pools.
- Requirements include transaction transparency, recordkeeping, and technology safeguards as stated by SEC Commissioner Mark Uyeda.
- TSVs must publish US dollar-denominated transaction data including prices, trade sizes, and daily volumes.
- Symbol and volume limits will apply to ensure controlled trading under the Innovation Exemption framework.
This exemption aims to provide the SEC with data to evaluate onchain securities trading while seeking public feedback on the framework’s implementation.
The SEC’s new framework allows TSVs to engage in limited trading of tokenized stocks, enhancing transparency in transactions as they must regularly report detailed trading data.(Source)
