From Yahoo Finance · · 1m 10s
SEC grants tokenized stock trading exemption
SEC gives five-year exemption for tokenized stock trading platforms.
In brief
SEC gives five-year exemption for tokenized stock trading platforms. SEC allows tokenized stock trading venues to operate under a five-year exemption from exchange rules, requiring full ownership rights and 30-day review for new listings. Originally reported by Yahoo Finance.
SEC issues innovation exemption
The Securities and Exchange Commission granted trading venues a five-year conditional exemption from the definition of 'exchange' under the Securities Exchange Act of 1934.
Tokenized Securities Venues defined
Tokenized Securities Venues bring buyers and sellers of tokenized National Market System stock through permissioned automated market makers and liquidity pools.
Exemption requirements
TSVs must confirm tokenized stocks grant full economic and governance entitlements, including dividends and voting rights, and face caps on listed symbols and trading volume.
30-day review for new listings
TSVs must send formal written notice to issuers before tokenizing shares they don't control and wait 30 days for potential objections.
Smart contract rules
Smart contracts used by TSVs must be auditable, public, and deployed on a public, permissionless distributed ledger.
Exemption expiration
The exemption expires five years after publication and requires durable rulemaking to ensure onchain markets remain viable as capital markets evolve.
Here's the gist
SEC allows tokenized stock trading venues to operate under a five-year exemption from exchange rules, requiring full ownership rights and 30-day review for new listings.
