SEC Introduces Exemption for Tokenized U.S. Equities Trading
The Securities and Exchange Commission (SEC) has introduced an exemption to facilitate the onchain trading of tokenized versions of U.S.-listed stocks, following the failure of the Clarity Act in Congress. The initiative allows platforms known as Tokenized Securities Venues (TSVs) to trade these tokens using automated market makers without registering as national securities exchanges. The exemption includes protections for issuers and investors by requiring companies' approval before tokenization can proceed and ensuring that tokenized stocks carry the same rights as traditional shares. While it excludes synthetic assets, which track stock prices but lack direct ownership benefits, the SEC aims to provide a regulatory bridge toward future rulemaking or legislation. The exemption is temporary, lasting up to five years, with limitations on how many stocks each TSV can offer and their trading volumes. The move could intensify competition between DeFi platforms and traditional exchanges by offering more flexible regulation.
Topics: Capital Markets Innovation Crypto Regulation Tokenized Stocks