Overview
- The SEC issued the Innovation Exemption on Sept. 17, 2026, giving Tokenized Securities Venues a five-year, conditional pathway to trade tokenized National Market System stocks without registering as national exchanges.
- Platforms operating under the exemption must use permissioned automated market makers and liquidity pools on public blockchains while keeping smart contracts public and auditable.
- Tokenized shares must convey the same economic and governance rights as conventional stock, including dividends and voting, and products that only track price or act as derivatives are barred.
- The order requires venues to notify issuers 30 days before third-party tokenization and to halt token trading when the underlying stock is suspended, and the SEC will take public comment and hold roundtables to shape future rules.
- Major crypto and brokerage firms have signaled interest and the pilot could enable faster settlement and round-the-clock trading, but the relief is temporary, reversible, and not a substitute for comprehensive legislation.