SEC Grants Innovation Exemption for Tokenized Stock Trading in the U.S.

The U.S. Securities and Exchange Commission (SEC) has introduced an innovation exemption allowing for the on-chain trading of tokenized stocks listed on major U.S. exchanges. This temporary regulatory framework establishes Tokenized Securities Venues (TSVs), which can facilitate trading of National Market System (NMS) stock tokens via liquidity pools and automated market makers without being classified as traditional exchanges. SEC Chair Paul Atkins described the move as a bridge to modernize capital markets following the recent failure of the Clarity Act in the Senate. Tokenized assets under this framework must represent actual shares, including rights to dividends and voting.