SEC Crypto Task Force Chief Legal Counsel Taylor Lindman said the first tokenized stock trading platforms could begin announcing operating plans as soon as next quarter under a newly launched innovation exemption framework. According to Odaily, the SEC has already received interest from several companies seeking to participate.

The exemption is valid for five years and would allow eligible platforms to trade tokenized U.S.-listed stocks on public, permissionless blockchains through permissioned AMMs and liquidity pools. The tokens would need to preserve traditional shareholder rights such as dividends and voting.

SEC Commissioner Hester Peirce said the current trading volume cap is sufficient to support commercial operations and described the exemption as a transitional arrangement before long-term regulatory rules are issued.