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The Securities and Exchange Commission issued an order on September 17 granting temporary, conditional exemptive relief to Tokenized Securities Venues, relieving them of the 'exchange' definition under the Exchange Act for trading tokenized NMS stock through permissioned automated market makers and liquidity pools.
The move comes after a Senate market structure bill stalled, the legislative path that would have produced a more durable lane for tokenized equities. Without the bill, compliant venues had no clean US option. The order delivers one, narrowly drawn and time-limited, for those willing to operate under SEC-defined guardrails.
Why it matters
The order is the first US regulatory permission for permissioned AMMs to intermediate trades in NMS-listed equities, the universe covering Nasdaq and NYSE-listed stocks. Until now, on-chain equity liquidity pools sat in a grey zone between broker-dealer and exchange registration. Exemptive relief gives compliant operators a defined sandbox without forcing them into the full exchange regime.
Market impact
For the RWA sector, the order validates tokenized equities as a regulated US activity, not an offshore workaround. Watch which venues file under it first; those names will set the tone for the next leg of US tokenized equity infrastructure.
Frequently asked questions
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What did the SEC actually approve in the September 17 order?
The SEC granted temporary, conditional exemptive relief freeing Tokenized Securities Venues from the 'exchange' definition under the Exchange Act to trade tokenized NMS stock via permissioned AMMs and liquidity pools.
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Why did the SEC use exemptive relief instead of waiting for legislation?
A Senate market structure bill that would have produced a more durable pathway for tokenized equities had stalled, leaving compliant venues without a clean US regulatory lane.
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What stocks can now be traded on these tokenized venues?
Tokenized NMS stock, the universe covering Nasdaq and NYSE-listed equities, can now be intermediated through permissioned AMMs under the relief.
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Is the SEC's permission permanent?
No. The relief is temporary, conditional, and narrowly drawn, leaving room for the SEC to tighten or revoke as it gathers data on market integrity and surveillance.
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Which venues are expected to file under the new order?
The SEC has not named filers. The first Tokenized Securities Venues to operate under the order will set the tone for the next leg of US tokenized equity infrastructure.
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