SEC issues temporary Innovation Exemption for tokenized NMS stocks

SEC: The U.S. Securities and Exchange Commission is the primary federal agency responsible for enforcing securities laws, regulating markets, and protecting investors. In the context of this news, the SEC has issued a temporary, conditional Innovation Exemption to enable limited onchain trading of tokenized NMS stocks on designated venues while informing future policy. Regulatory Pace: The action reflects the SEC's approach to balancing rapid innovation with measured, data-driven steps toward potential durable rulemaking. Tokenization Focus: Tokenization is viewed as a means to modernize securities market functions such as issuance, trading, transfer, settlement, and ownership recording. Innovation Exemption: The SEC approved a temporary exemption allowing Tokenized Securities Venues to facilitate permissioned trading of tokenized stocks using automated market makers without certain exchange or dealer registrations.