Regulation · Instrument · United States · Exemptive order · U.S. Securities and Exchange Commission
SEC order granting temporary conditional exemptive relief for trading of tokenised NMS stock on Tokenized Securities Venues (Release No. 34-106402, the Innovation Exemption)Updated 14 Oct 2026
A five-year conditional exemption from the Exchange Act definition of exchange for Tokenized Securities Venues that run permissioned automated-market-maker liquidity pools in tokenised NMS stock on public, permissionless blockchains, plus a matching exemption from the dealer definition for liquidity providers in those pools. Synthetic products such as tokenised linked securities are excluded.
In force · effective 17 Sep 2026 · part of SEC framework for tokenised securities and crypto assets (federal securities laws, staff statements and exemptive relief)
Key points
- Trading is limited by number of symbols and volume.[1]
- The venue must verify that each tokenised stock gives holders the same rights as the traditional stock of an equivalent class.[1]
- For stock tokenised by an unaffiliated third party, the venue must give the issuer written notice and a chance to object before trading starts.[1]
- Smart contracts must be public, auditable and deployed on a public permissionless ledger; venues must publish a notice at least 30 days before operating and notify the SEC.[1]
Timeline
- 17 Sep 2026 · In forceSEC issues the order and requests comment on possible changes.[2]
- 22 Sep 2026 · AmendedOrder published in the Federal Register (91 FR 60168; File No. 4-927).[3]
- Sep 2031 · Expired · upcomingOrder set to expire five years after publication.[3]
Deployments operating under it
None recorded with a source yet.
Sources
- [1]Fact sheet: Order Granting Temporary Conditional Exemptive Relief for Trading of Tokenized NMS Stock on Tokenized Securities Venues — U.S. Securities and Exchange Commission, 17 Sep 2026. Accessed 12 Oct 2026.A
- [2]SEC Issues Innovation Exemption to Facilitate Trading of Tokenized NMS Stock, Requests Comment — U.S. Securities and Exchange Commission, 17 Sep 2026. Accessed 12 Oct 2026.A
- [3]Order Granting Temporary Conditional Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934, From the Definition of “Exchange” in Section 3(a)(1) of the Exchange Act for the Use of Certain Distributed Ledger Trading Venues for Tokenized NMS Stocks and From the Definition of “Dealer” in Section 3(a)(5) of the Exchange Act for Certain Liquidity Providers for Tokenized NMS Stocks, and Request for Comment — Federal Register (Office of the Federal Register), 22 Sep 2026. Accessed 14 Oct 2026. Read via the Federal Register API (/api/v1/documents/2026-19388.json) and the full_text .txt; the HTML page redirects to unblock.federalregister.gov..A