SEC Grants Temporary Exemption for Onchain Trading of Tokenized Stocks
- The SEC approved a temporary, conditional Innovation Exemption for trading tokenized stocks on eligible venues.
- Automated market makers and liquidity pools can be used without being classified as exchanges under the Exchange Act.
- Venues must comply with transaction transparency, recordkeeping, and security requirements while limiting tickers and trading volumes.
- Transaction data must be published regularly, including prices and trade sizes.
- The initiative aims to gather data on new trading models to inform future regulations.
This exemption allows for limited onchain trading of tokenized stocks while ensuring compliance with SEC requirements, enabling the collection of crucial data for future regulatory frameworks.
With this approval, the SEC continues its efforts to integrate tokenized securities into the U.S. market, following previous measures like Nasdaq’s authorization in March to trade these assets alongside traditional stocks.
