{"id":13409,"date":"2026-09-18T07:45:47","date_gmt":"2026-09-18T07:45:47","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13409"},"modified":"2026-09-18T07:45:47","modified_gmt":"2026-09-18T07:45:47","slug":"sec-unveils-innovation-exemption-to-enable-onchain-trading-of-tokenised-stocks","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13409","title":{"rendered":"SEC Unveils \u201cInnovation Exemption\u201d to Enable Onchain Trading of Tokenised Stocks"},"content":{"rendered":"

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  • The SEC has approved a temporary exemption allowing certain tokenised US stocks to trade on permissioned onchain venues.<\/span><\/li>\n
  • TSVs must meet conditions including US operation, sanctions compliance and restricted access for approved participants.<\/span><\/li>\n
  • Tokenised stocks must retain corresponding dividend and voting rights, while anti-fraud rules and trading limits remain in place.<\/span><\/li>\n
  • SEC Chair Paul Atkins and Commissioner Mark Uyeda said the exemption could help inform longer-term rules for onchain securities markets.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    The US Securities and Exchange Commission (SEC) has approved a temporary exemption allowing certain tokenised US stocks to trade on selected onchain venues, marking a significant step towards bringing traditional securities markets onto blockchain infrastructure.<\/p>\n

    The SEC approved the Innovation Exemption on 17 September, providing temporary relief for Tokenized Securities Venues, or TSVs, from being treated as an \u201cexchange\u201d under the Exchange Act. Certain liquidity providers, known as Covered Firms, will also receive relief from being classified as \u201cdealers\u201d when they meet specified conditions.<\/p>\n

    SEC Chair Paul Atkins said the Commission was moving to \u201cfacilitate onchain trading of certain tokenized stocks\u201d, following his earlier comments that the administration would continue advancing crypto regulation \u201cwith or without\u201d the CLARITY Act, after the Senate failed to advance the legislation earlier this week.<\/p>\n

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    Today, the Securities and Exchange Commission is taking a significant step forward, within its statutory authority, to bring America\u2019s capital markets into the digital age.<\/p>\n<\/div>\n

    \n SEC Chair Paul Atkins <\/div>\n<\/div>\n

    Read more: SEC and CFTC Signal Crypto Rulemaking Push After Clarity Act Stalls<\/strong><\/p>\n

    Investor Protections Remain in Place<\/h2>\n

    The exemption is not a blanket approval for tokenised equities to trade freely on any blockchain-based platform. TSVs must meet a number of conditions, including being US persons, complying with sanctions requirements and operating permissioned venues where access is restricted to approved participants.<\/p>\n

    The rules also prohibit synthetic versions of stocks. Eligible tokenised stocks must be issued by, or on behalf of, the underlying issuer, or tokenised by an unaffiliated third party. Atkins said investors must retain \u201cthe same rights and privileges as the traditional securities, including rights to receive dividends and exercise voting rights\u201d.<\/p>\n

    He added that issuers can \u201cobject and prevent their security from trading on a TSV\u201d.<\/p>\n

    The SEC will publish regular trading data \u2013 things like price, trade size and pool activity \u2013 to keep the market visible as it studies how TSVs actually behave.\u00a0<\/p>\n

    Commissioner Mark Uyeda said the exemption reflects the SEC\u2019s broader use of its exemptive powers to allow new market structures and products to develop while maintaining investor protections.<\/p>\n

    Uyeda said regulation should focus on outcomes rather than legacy rulebooks, aiming for rules that \u201ccan effectively adapt to onchain environments while preserving investor protection\u201d.\u00a0<\/p>\n

    Uyeda also pointed to money market funds, index funds and ETFs as examples of products that benefited from the SEC\u2019s use of exemptive authority in the past. He said the Innovation Exemption would allow the regulator to \u201cexperiment responsibly, learn, and translate old protections to new contexts\u201d.<\/p>\n

    Read also: Fed Hikes Rates Again, Putting Inflation Front and Center<\/strong><\/p>\n

    A Temporary Step Towards Permanent Rules<\/h2>\n

    The SEC has made clear that the exemption is not intended to establish a permanent regulatory framework for tokenised securities.<\/p>\n

    Instead, the Commission plans to use the exemption to observe how onchain venues and market participants operate and gather data that could inform longer-term rules. The SEC is also seeking public feedback on the framework and its conditions.<\/p>\n

    Atkins said the exemption is intended to give TSVs a way to operate in a permissioned environment while the SEC considers further action.<\/p>\n

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    The Innovation Exemption, while temporary, would allow TSVs to trade tokenized NMS stock in a permissioned environment today.<\/p>\n<\/div>\n

    \n SEC Chair Paul Atkins <\/div>\n<\/div>\n

    For the crypto industry, the decision gives tokenised US equities a clearer regulatory pathway, although the initial framework remains limited in scope and subject to strict conditions.<\/p>\n<\/p><\/div>\n

    Onchain,SEC,Tokenisation#SEC #Unveils #Innovation #Exemption #Enable #Onchain #Trading #Tokenised #Stocks1789717547<\/p>\n","protected":false},"excerpt":{"rendered":"

    The SEC has approved a temporary exemption allowing certain tokenised US stocks to trade on permissioned onchain venues. TSVs must meet conditions including US operation, sanctions compliance and restricted access for approved participants. Tokenised stocks must retain corresponding dividend and voting rights, while anti-fraud rules and trading limits remain in place. SEC Chair Paul Atkins<\/p>\n","protected":false},"author":1,"featured_media":13410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[2393,4546,849,492,517,991,488,244,2224],"class_list":["post-13409","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","tag-enable","tag-exemption","tag-innovation","tag-onchain","tag-sec","tag-stocks","tag-tokenised","tag-trading","tag-unveils"],"yoast_head":"\nSEC Unveils \u201cInnovation Exemption\u201d to Enable Onchain Trading of Tokenised Stocks - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=13409\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Unveils \u201cInnovation Exemption\u201d to Enable Onchain Trading of Tokenised Stocks\" \/>\n<meta property=\"og:description\" content=\"The SEC has approved a temporary exemption allowing certain tokenised US stocks to trade on permissioned onchain venues. 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