The US Securities and Exchange Commission has introduced a new temporary framework designed to facilitate the trading of tokenised equities through blockchain-based platforms.
Announced on 17 September, the SEC’s new “Innovation Exemption” grants conditional relief to Tokenized Securities Venues, allowing them to offer trading in tokenised National Market System stocks without registering as traditional exchanges.
The five-year exemption will permit approved venues to utilise permissioned automated market makers and liquidity pools, subject to a range of investor protection requirements.
These include ensuring tokenised shares provide the same rights as underlying securities, using auditable public smart contracts and implementing trading controls linked to underlying market halts.
SEC Chairman Paul Atkins described the move as a significant step towards facilitating onchain trading while regulators consider longer-term rulemaking.
The SEC is also seeking public feedback on the framework as it evaluates the future role of tokenised securities within US capital markets.
