SEC grants conditional exemption for tokenised stocks

The US Securities and Exchange Commission issued a temporary innovation exemption for qualifying venues trading tokenised National Market System stocks. The five-year framework allows permissioned automated market-maker pools to operate on public, permissionless blockchains under specified conditions.

Eligible tokens must carry the same ownership rights as the underlying shares. The framework includes limits on symbols and trading volume, requires publicly auditable contracts, and provides for trading halts that follow halts in the underlying stock. Unaffiliated tokenisation also requires notice to the issuer and an opportunity to object.

The measure includes conditional relief for certain liquidity providers and invites public comment. Its scope is defined by the order's eligibility and operating requirements. It creates a route for qualifying stock-trading arrangements rather than a general exemption for all tokens, trading venues or decentralised finance applications.