SEC Grants 'Innovation Exemption' to Enable Onchain Stock Trading

The U.S. Securities and Exchange Commission has issued an 'Innovation Exemption' allowing Tokenized Securities Venues (TSVs) to facilitate the trading of tokenized National Market System stocks. The temporary relief permits trading via permissioned AMMs and liquidity pools, provided that smart contracts are publicly auditable and tokenized shares maintain equivalent rights to traditional stocks. SEC Chairman Paul Atkins noted that the move is a first step toward facilitating onchain trading.