The U.S. SEC approved an innovative exemption, allowing certain tokenized NMS stocks to be traded on on-chain venues

The U.S. Securities and Exchange Commission (SEC) stated that tokenization is expected to reduce costs in market infrastructure aspects such as issuance, trading, transfer, settlement, and ownership records, while enhancing transparency and liquidity. The SEC approved a temporary, conditional "Innovation Exemption," allowing tokenized NMS stocks to be traded in a limited manner on certain on-chain venues—tokenized securities trading venues (TSVs).

It is reported that TSVs meeting the exemption conditions can conduct approved trading through automated market makers and liquidity pools, but must meet requirements for public disclosure, trading transparency, circuit breaker coordination, record keeping, and technical safeguards, while also being subject to limits on the number of stock codes and trading volume.

The SEC indicated that this move aims to observe the operation of on-chain trading venues and market participants, providing data for the formulation of long-term regulatory rules in the future.