SEC Grants 'Innovation Exemption' for Tokenized Stock Trading — SkimNews
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- The SEC issued an order titled the "Innovation Exemption," granting temporary, conditional exemptive relief to entities defined as Tokenized Securities Venues (TSVs).
- The relief exempts TSVs from the definition of "exchange" under the Securities Exchange Act of 1934, enabling them to trade tokenized NMS stock, and the SEC simultaneously issued a Request for Comment.
Why it matters: The order carves out a defined regulatory lane for trading tokenized versions of NMS-listed equities, giving blockchain-based venues temporary cover to operate without registering as exchanges. The conditional, time-limited nature paired with an explicit comment request signals the SEC is piloting before committing to permanent rule changes.
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