US Regulator Opens Limited Route for Onchain Trading of Tokenized Stocks

The United States Securities and Exchange Commission has approved temporary, conditional relief allowing certain venues to trade tokenized versions of publicly listed stocks through permissioned blockchain systems.

The measure, described by the regulator as an innovation exemption, applies to qualifying tokenized-securities venues that use automated market makers and liquidity pools. It provides limited relief from parts of the legal definitions of an exchange and a dealer.

The order is designed for tokenized National Market System stocks rather than synthetic products that merely track a share price. Eligible tokens must represent the underlying security, and participating venues must meet conditions intended to protect investors and preserve market oversight.

The exemption is temporary and runs for five years while the regulator considers whether broader rule changes are needed. The SEC has also requested public comment on the model and its safeguards.

The decision creates a controlled path for testing onchain secondary trading, but it does not amount to approval of every tokenized-stock platform. Operators must satisfy the order’s requirements before relying on the relief.