SEC requires tokenized securities venues to publicly disclose auditable smart contracts and deploy them on unlicensed ledgers

The SEC requires that smart contracts used by tokenized securities venues (TSVs) must be auditable, publicly available, and deployed on open, permissionless distributed ledgers. TSV must simultaneously suspend trading of tokenized NMS stocks with the main listed exchange, and publicly disclose its own operations, trading activities, and related party trading activities. TSV must provide written notice and opposition opportunities to the issuer in advance for stocks tokenized by unrelated third parties. The exemption will expire five years from its announcement. (Source: SEC)