Original sourcewilmerhale.com
Summary
On September 17, 2026, the SEC issued a five-year conditional exemptive order (dubbed the 'innovation exemption'), allowing tokenized NMS stocks to be traded on-chain under a permissioned approach. The exemption has two parts: the Tokenized Securities Venue (TSV) exemption, which prevents qualified…
Key points
- This is the first time US regulators have drawn concrete compliance boundaries for on-chain market structures (AMMs, liquidity pools) for tokenized traditional securities.
- It determines whether tokenized stocks can be traded on-chain in the US, with far-reaching implications for RWA product design and the scope of securities law application.
- Teams developing on-chain securities trading products can design permissioned access and disclosure structures accordingly; compliance costs and public ledger requirements will become thresholds for whether products can launch.
Editorial note
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