SEC Chairman Paul Atkins approves innovation exemption, allowing tokenized NMS stocks to be traded on the blockchain

SEC Chairman Paul Atkins announced the approval of an innovation exemption, allowing specific tokenized NMS stocks to be traded on the chain. This order grants two types of temporary exemptions under Section 36 (a) (1) of the Exchange Act, exempting tokenized securities venues from the definition of exchanges and exempting specific liquidity providers from the definition of distributors. The anti fraud and anti manipulation provisions of the Federal Securities Act apply to all securities activities. Exemption from accompanying investor protection conditions, including TSV must be a US entity and comply with OFAC sanctions compliance, trading is only allowed to specific participants, tokenized NMS stocks must be tokenized by the issuer or a third party and holders have equal rights. The issuer has the right to prevent its securities from trading on TSV. The committee is currently soliciting public opinion on this matter and will subsequently formulate sustainability rules.