SEC Grants Temporary Relief for Tokenized Stock Venues

The Securities and Exchange Commission has granted temporary, conditional exemptive relief to venues it designates as Tokenized Securities Venues, carving them out of the "exchange" definition in the Securities Exchange Act of 1934 so they can facilitate trading in tokenized NMS stock.

The relief is narrow by design. It applies only to venues meeting the designation, and it is both temporary and conditional, meaning the exemption carries terms rather than offering a permanent carve-out. NMS stock refers to equity securities listed on national exchanges, the core of the US public market.

Alongside the order, the SEC launched a request for comment, inviting market participants to submit views on the approach. That step signals the agency is still shaping its position and is seeking input before deciding whether tokenized trading venues warrant a lasting framework or a narrower accommodation.

Tokenization has become a central question for regulators, as firms argue that blockchain-based representations of shares could make settlement faster and trading more accessible. The order does not resolve that broader debate. It creates a time-limited path for these venues while the SEC collects feedback.