Code & Chain · Signal Desk

SEC Adopts 'Innovation Exemption': Conditionally Opens On-Chain Trading of Tokenized NMS Stocks

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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