SEC approves innovation exemption, allowing tokenized NMS stocks to be traded on chain

The US Securities and Exchange Commission has approved an innovation exemption, allowing eligible tokenized NMS stocks to be traded on the blockchain, with the aim of reducing costs and enhancing market transparency. Qualified tokenized securities trading venues can conduct approved transactions through automated market makers and liquidity pools, but must meet requirements such as public disclosure, trading transparency, circuit breaker coordination, record keeping, and technical support, and be subject to restrictions on the number of stock codes and trading volume limits.