Statement on the Innovation Exemption

2 hours ago

1 min read

Uyeda, M. T. (2026, September 17). Statement on the innovation exemption. U.S. Securities and Exchange Commission. https://www.sec.gov/newsroom/speeches-statements/uyeda-statement-innovation-exemption-091726

The Commission approved a temporary, conditional exemption, the Innovation Exemption, allowing limited trading of tokenized NMS stocks on certain onchain venues called Tokenized Securities Venues, or TSVs.
The exemption gives TSVs temporary relief from concerns that they may be viewed as an exchange under the Exchange Act when they offer tokenized NMS stocks for permissioned trading through automated market makers and liquidity pools.
TSVs relying on the relief must meet specified conditions including public notice, transaction transparency, stoppage coordination, books and records, and technology safeguards.
The relief is designed to be controlled, subject to symbol limits and volume caps calibrated by limit up, limit down tiers.
U.S. dollar-denominated transaction data, including price, size, time, pool address, end-of-day pool size and daily volume, will be publicly available at regular intervals.
The exemption includes tailored relief for certain liquidity providers contributing proprietary capital that meet conditions including disclosure and recordkeeping.
The Commission is expressly soliciting feedback on many aspects of the framework and its current design, seeking detailed, data-supported comments to evaluate tradeoffs and shape future proposals.

Knote: I think tokenized public equities is a "nice to have" but the real game changer is tokenized private assets and anything that gets us closer is a thumbs-up in my book.