Summary
The US SEC has published a five-year 'innovation exemption' allowing qualified platforms to offer trading in tokenized stocks and other securities without most exchange registration obligations; liquidity providers for tokenized stocks also receive a five-year dealer registration exemption. Platfor…
Key points
- This is the first time US securities regulators have provided a clear multi-year compliance channel for tokenized stocks, directly affecting product planning for trading platforms, brokerages, and issuers.
- The SEC is using existing authority to bypass legislative gridlock, establishing a workable five-year pilot framework for tokenized securities that will determine whether on-chain stock trading can take hold in the US.
- Trading platforms and brokerages can begin designing compliant tokenized stock products, while issuers gain veto and notification rights over tokenization of their shares; investor rights must match those of traditional shareholders.
Editorial note
This page is Code & Chain's editorial summary of public sources. It may be prepared with AI assistance and published through an automated workflow. Refer to the original sources; this content is not investment, legal, or tax advice.