Deep Tide TechFlow message: On September 22, according to Crypto In America, Taylor Lindemann, Chief Legal Advisor to the SEC’s Crypto Assets Working Group, said the first tokenized stock trading platforms operating under the “Innovation Exemption” could take shape as early as next quarter. Related companies are expected to issue operational announcements in the coming months. This five-year conditional exemption allows eligible platforms to use a permissionless public blockchain—along with automated market makers and liquidity pool trading—to deploy tokenized versions of U.S. exchange-listed stocks.

SEC Commissioner Hester Peirce said that such platforms are closer to “on-chain finance” rather than decentralized finance because there is still a clearly defined operational and compliance-responsible entity. She believes that the current trading products and size limits are sufficient to support commercial operations, and that the SEC in the future may adjust restrictions based on market developments and develop a long-term regulatory framework. Under the rules, public companies may, within 30 days of receiving notice, oppose the tokenized version of their stock issued by a third party.