First tokenized stock venues could take shape next quarter under SEC’s Innovation Exemption

Taylor Lindman, chief counsel of the SEC Crypto Task Force, stated that the first trading venues for tokenized stocks under the new Innovation Exemption are expected to emerge next quarter. While these platforms will utilize automated market makers and liquidity pools, they are categorized as on-chain finance rather than decentralized finance, as they require a clearly defined entity responsible for compliance. The five-year conditional exemption allows for permissioned trading of U.S.-listed stocks on public blockchains.