# SEC grants tokenized stock trading exemption

> SEC gives five-year exemption for tokenized stock trading platforms.
- Title: SEC grants tokenized stock trading exemption · Yahoo Finance
- Summary: SEC gives five-year exemption for tokenized stock trading platforms. SEC allows tokenized stock trading venues to operate under a five-year exemption from…
- Keywords: sec, tokenized securities venues, tsv, securities exchange act, innovation exemption, onchain trading, tokenized stocks, public comment, business, finance, grants, tokenized
- Source: Yahoo Finance — https://finance.yahoo.com/markets/crypto/articles/sec-issues-innovation-exemption-tokenized-131950838.html
- Published: 2026-09-17T13:19:50+00:00
- Read time: 1 min
- Topics: sec, tokenized securities venues, tsv, securities exchange act, innovation exemption, onchain trading, tokenized stocks, public comment, business, 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.
## Key takeaway

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.