#SECGrantsInnovationExemptionForTokenizedStocks SEC Grants Innovation Exemption for Tokenized Stocks
The U.S. Securities and Exchange Commission (SEC) has introduced a temporary “Innovation Exemption” that creates a regulated pathway for certain tokenized U.S. stocks to trade on blockchain-based venues. The order was announced on September 17, 2026. �
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Under the exemption, qualifying Tokenized Securities Venues (TSVs) can facilitate trading of tokenized National Market System (NMS) stocks through permissioned automated market makers (AMMs) and liquidity pools without being treated as traditional exchanges under specified conditions. Certain liquidity providers also receive conditional relief from the SEC's dealer-registration requirements. �
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The exemption is temporary and conditional, lasting five years. Tokenized shares must generally provide holders with the same economic and governance rights as the underlying securities, including dividends and voting rights. Synthetic stock tokens are not covered by the exemption. �
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The SEC's framework also gives stock issuers an opportunity to object to third-party tokenization. TSVs must use permissioned access and comply with investor-protection, sanctions, anti-fraud and market-integrity requirements. �
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The SEC said the initiative is intended to let markets experiment with onchain securities trading while the agency gathers public feedback and considers longer-term regulatory rules. Potential blockchain benefits identified by the SEC include self-custody, fractional ownership, around-the-clock trading, faster settlement and greater transparency. �
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The development provides a new U.S. regulatory framework for experimenting with onchain equity markets, while leaving permanent rules for tokenized stocks to future SEC rulemaking. �
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