US SEC Approves Innovation Exemption, Allowing Some Tokenized Stocks to Trade on On-Chain Venues

Odaily News: The U.S. Securities and Exchange Commission (SEC) stated that tokenization is expected to reduce costs in market infrastructure links such as issuance, trading, transfer, settlement, and ownership records, while enhancing transparency and liquidity. The SEC today approved a temporary, conditional "Innovation Exemption," allowing tokenized stocks to conduct limited trading on certain on-chain venues—Tokenized Securities Trading Venues (TSVs).

It is reported that qualifying TSVs can conduct approved trading through automated market makers and liquidity pools, but must meet requirements including public disclosure, trading transparency, circuit breaker coordination, record-keeping, and technical safeguards, while being subject to limits on the number of ticker symbols and trading volume. The SEC stated that this move aims to observe the operations of on-chain trading venues and market participants, providing a data basis for formulating long-term regulatory rules in the future.