The U.S. Securities and Exchange Commission (SEC) has granted a special temporary framework. The framework will now allow certain blockchain-based platforms to facilitate on-chain trading of tokenized US stocks. This is a five-year “Innovation Exemption” for eligible venues and liquidity providers involved in tokenized securities markets.

🚨 TODAY: The SEC issued an order granting temporary, conditional exemptive relief to Tokenized Securities Venues from the definition of “exchange” in the Exchange Act to trade tokenized NMS stock using innovative permissioned automated market makers and liquidity pools. pic.twitter.com/VDi7Oty2d9

— U.S. Securities and Exchange Commission (@SECGov) September 17, 2026

This development is apparently a significant step for the growing tokenization sector. It is integrating traditional financial assets onto blockchain networks. The SEC has previously recognized tokenized securities as securities represented through crypto assets. This means the underlying regulatory status does not change simply because an asset is recorded on a blockchain.

SEC Creates New Framework for Tokenized Stock Trading

SEC Chairman Paul S. Atkins described the exemption as a crucial step toward bringing US capital markets into the digital era.

Under the new framework, qualifying Tokenized Securities Venues (TSVs) can receive relief from the definition of an “exchange” when they facilitate trading of tokenized National Market System (NMS) stocks through permissioned automated market makers (AMMs) and liquidity pools.

The SEC is also providing conditional relief for dealer registration requirements to certain liquidity providers who use their own capital to support these pools.

The framework applies only to tokenized stocks that provide the same economic and ownership rights as traditional shares. These include dividend and voting rights. Synthetic tokens that simply track the price of a stock without providing underlying ownership rights are excluded.

SEC to Monitor Tokenized Asset Markets

The exemption could provide additional opportunities for crypto-native platforms and other blockchain-based market operators.

TSVs must operate as US persons and comply with applicable Office of Foreign Assets Control (OFAC) sanctions. They must also restrict access to permissioned participants and limit the number of supported stocks. They will also have to publicly disclose information about their trading activity.

Stock issuers will receive at least 30 days’ notice before their shares are listed on a TSV and can object to the proposed trading.