US SEC does not yet determine whether TSV or liquidity providers qualify as "exchanges" or "dealers"

Odaily reports: U.S. Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce stated that the "innovation exemption" has been implemented, and the SEC today issued an order granting a time-limited exemption to allow on-chain trading of stocks listed on major U.S. exchanges. The exemption establishes a new category called "Tokenized Securities Trading Venue" (TSV), allowing it to conduct trading through automated market maker (AMM) liquidity pools, while also providing an exemption from the "dealer" definition for certain participants who provide liquidity to TSVs. Peirce stated that the measure is intended to allow market participants to experiment in order to observe how tokenized NMS stocks trade in different on-chain scenarios and how they interact with traditional markets, thereby accumulating data for the formulation of long-term regulatory rules.

Hester M. Peirce also emphasized that the exemption is not aimed at decentralized finance (DeFi), and the SEC will not preemptively determine that TSVs or their liquidity providers (LPs) qualify as "exchanges" or "dealers."