SEC Introduces 'Innovation Exemption' to Facilitate Onchain Tokenized Stock Trading

Following the failure of the CLARITY Act in the Senate, the SEC has launched an "Innovation Exemption" to allow for the onchain trading of tokenized U.S. equities. Qualifying platforms, designated as Tokenized Securities Venues (TSVs), can now facilitate trading via automated market makers on public blockchains without registering as national securities exchanges. The five-year exemption applies only to tokenized stocks that carry traditional rights like dividends and voting, explicitly excluding synthetic price-tracking products.