Overview
- The SEC issued an order on Sept. 17, 2026 that creates a five‑year “Innovation Exemption” allowing qualifying Tokenized Securities Venues (TSVs) to list and trade tokenized National Market System stocks without registering as national exchanges.
- Tokens must represent real ownership with the same shareholder rights as conventional shares, including dividends and voting, and synthetic or derivative products that do not convey ownership are explicitly excluded.
- A TSV that seeks to tokenize a company’s shares must notify the issuer 30 days beforehand and a timely issuer objection blocks the tokenized listing on that venue.
- The order imposes operational limits and transparency rules, including public auditable smart contracts on a public ledger, synchronized trading halts with primary exchanges, caps on symbols and venue trading volume, and public reporting requirements.
- The exemption follows the Senate’s failure to advance the CLARITY Act and arrives alongside narrower CFTC staff relief; regulators say the controlled, permissioned trial is meant to test on‑chain trading, potential 24/7 market effects, and inform future rulemaking while no operators had been named in the order at issuance.