The chairman of the U.S. SEC, Gary Atkins, announced on Thursday an “innovation exemption,” opening up on-chain trading channels for tokenized U.S. stocks within existing statutory authority. The exemption takes effect immediately and will be piloted for five years.
Tokenized securities platforms that meet the requirements may use a licensed automated market maker and liquidity pool to trade tokenized U.S. stocks that carry voting rights and dividend rights as real tokenized securities, without having to register as a national securities exchange. Institutions providing liquidity may also be exempted from certain broker-dealer registration requirements.
The exemption explicitly excludes synthetic tokens that merely track stock prices, and requires that tokenized stocks confer the same rights as the original shares. The issuing company has the right to object; the platform must give advance notice and, within thirty days, accept the company’s opposition. If the underlying stocks are suspended on the main board, the corresponding tokens must be suspended from trading as well.
Atkins said this step brings the U.S. capital markets into the digital age. After the news was released, some companies involved in digital assets saw their stock prices rise.
Tokenized securities platforms that meet the requirements may use a licensed automated market maker and liquidity pool to trade tokenized U.S. stocks that carry voting rights and dividend rights as real tokenized securities, without having to register as a national securities exchange. Institutions providing liquidity may also be exempted from certain broker-dealer registration requirements.
The exemption explicitly excludes synthetic tokens that merely track stock prices, and requires that tokenized stocks confer the same rights as the original shares. The issuing company has the right to object; the platform must give advance notice and, within thirty days, accept the company’s opposition. If the underlying stocks are suspended on the main board, the corresponding tokens must be suspended from trading as well.
Atkins said this step brings the U.S. capital markets into the digital age. After the news was released, some companies involved in digital assets saw their stock prices rise.