SEC Introduces Temporary Exemption for Tokenized Securities Venues

The U.S. Securities and Exchange Commission (SEC) has issued an order providing a five-year temporary exemption from 'exchange' and 'dealer' definitions for Tokenized Securities Venues (TSV). This framework allows eligible participants to trade tokenized NMS stocks via automated market makers (AMM). However, the exemption imposes strict requirements, including asset eligibility limited to tokenized NMS stocks with full shareholder rights, mandatory notification to underlying issuers, and the use of public, auditable distributed ledgers. Platforms must also adhere to U.S. regulatory standards, including sanctions compliance, record-keeping, and operational transparency, while operating under specific volume and asset-count caps.