SEC grants five-year innovation exemption for tokenized U.S. stocks

Following the failure of the CLARITY Act, the SEC has introduced an 'Innovation Exemption' (Order 34-106402) granting Tokenized Securities Venues (TSV) a five-year conditional exemption to trade tokenized NMS stocks on public blockchains. The framework mandates strict requirements, including U.S. entity status, permissioned access, auditability, and full shareholder rights. The move is expected to impact firms like Securitize, Coinbase, and Robinhood, providing a clearer regulatory path for tokenized securities in the U.S.