SEC issues ‘Innovation Exemption’ 17 September 2026US Reporter: Madison Hendrickson
Image: SeanPavonePhoto/stock.adobe.com
The US Securities and Exchange Commission has announced a temporary, conditional exemptive relief to allow Tokenised Securities Venues (TSVs) to trade tokenised National Market System (NMS) stock using automated market makers and liquidity pools (AMM Liquidity Pools).
The Commission explains that the exemption for TSVs from the definition of ‘exchange’ — as it is currently defined in the Securities Exchange Act of 1934 — is subject to conditions designed to ensure the exemptive relief is in the public interest and consistent with protection of investors.
Paul S. Atkins, SEC chairman, in a statement says: “The Innovation Exemption, while temporary, would allow TSVs to trade tokenised NMS stock in a permissioned environment today while the Commission considers the need for additional action to facilitate onchain trading.”
Atkins expresses the exemption is a significant step forward to bring America’s capital markets “into the digital age”.
The order also temporarily grants a conditional exemption from the definition of ‘dealer’ as defined in section 3(a)(5) of the Exchange Act to liquidity providers in an AMM Liquidity pool used by a TSV.
The Committee states the exemptions are set to expire five years after publication, and the order solicits public comment about possible modifications to the exemptive relief and potential next steps.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one digital assets news source this
year, make sure it is your free subscription to The Digital Assets Edge
Image: SeanPavonePhoto/stock.adobe.com 