SEC Grants Temporary Exemption for Tokenized US Stock Trading

The U.S. Securities and Exchange Commission has approved a temporary exemption that permits limited trading of tokenized U.S. stocks on designated on‑chain platforms.

Scope of the Innovation Exemption

Under the exemption, Tokenized Securities Venues (TSVs) may conduct permissioned trading of tokenized National Market System (NMS) stocks through automated market makers and liquidity pools.

Key Requirements

• Transaction transparency, including public reporting of price, trade size, timestamp, pool address, end‑of‑day pool size and daily volume in U.S. dollars.
• Robust record‑keeping and technology safeguards.
• Symbol and volume limits imposed by the SEC.

Regulatory Intent

SEC Commissioner Mark Uyeda described the framework as “controlled” and intended to provide data for assessing on‑chain securities trading and shaping future rules.

Public Feedback and Next Steps

The SEC is soliciting public input on the exemption, seeking data, case studies, and information from live or test environments.

Background

The exemption follows months of development. In February, SEC Chair Paul Atkins indicated the agency was considering a temporary framework for tokenized securities trading via automated market makers while longer‑term regulations are drafted.