SEC Opens Path for Tokenized Stocks to Trade Onchain Under U.S. Securities Laws

The SEC has granted temporary, conditional relief allowing certain Tokenized Securities Venues to facilitate onchain trading of tokenized U.S. stocks under its new “Innovation Exemption.”
The exemption applies to qualifying NMS stocks and requires tokenized shares to provide holders with the same rights and privileges as traditional shares, including dividend and voting rights. Issuers must also have an opportunity to object to their stock being listed.
The relief is set to last five years, giving qualifying venues a regulatory path to conduct tokenized stock trading while the SEC considers longer-term rules.