SEC Launches 5-Year Innovation Exemption for Tokenized Stock Trading

The U.S. SEC has introduced a five-year innovation exemption allowing qualified platforms to trade tokenized U.S. stocks on public blockchains without registering as national securities exchanges. These Tokenized Securities Venues (TSV) must adhere to volume and listing limits while ensuring tokenized shares retain full shareholder rights, including voting and dividends. The framework aims to integrate automated market maker (AMM) technology into regulated capital markets, with issuers granted a 30-day notification period for any tokenization of their securities. This policy follows the SEC's broader efforts to test blockchain as a core infrastructure for U.S. stock market operations.