SEC Issues Innovation Exemption to Enable Trading of Tokenized NMS Stocks

The U.S. Securities and Exchange Commission (SEC) has announced a significant regulatory step aimed at facilitating the trading of tokenized National Market System (NMS) stocks. According to the regulator, it is utilizing its statutory authority to introduce an "Innovation Exemption" designed to modernize U.S. capital markets. The initiative is intended to facilitate onchain trading for certain tokenized stocks while allowing market participants and the public to provide feedback. Alongside the exemption, the SEC has published a request for comment to gather input on the framework and the broader integration of digital asset technology within regulated securities markets.