SEC Grants 5-Year Innovation Exemption for On-Chain Secondary Trading of Tokenized Stocks

The U.S. Securities and Exchange Commission (SEC) has issued an 'innovation exemption' to establish a path for on-chain secondary trading of tokenized stocks, effective from September 17, 2026, to September 17, 2031. The exemption applies to trading venues using permissioned automated market makers and liquidity pools on public, permissionless blockchains, restricted to verified participants. Eligible tokens must represent actual U.S. National Market System stocks with full shareholder rights. The exemption excludes primary offerings and synthetic exposures. Galaxy Research is currently evaluating steps to enable secondary trading for GLXY on-chain.