The Securities and Exchange Commission issued a temporary 'Innovation Exemption' intended to facilitate trading of certain tokenized U.S. stocks through permissioned automated-market-maker systems.
The order provides conditional relief from the statutory definition of an exchange for qualifying tokenized securities venues. The SEC said the framework is temporary while the commission considers whether additional rulemaking is needed for onchain trading.
The action does not broadly deregulate tokenized securities. Participating venues must satisfy the conditions in the order, and the underlying securities remain subject to federal securities laws.