SEC Order Opens Conditional Path for Tokenized Stocks, Leaves Sequencing Open

The SEC's conditional exemptions for tokenized U.S. stocks frame a possible trading model for eligible venues, while leaving transaction inclusion, sequencing and order confidentiality to separate network design choices. On Sept. 17, the Securities and Exchange Commission issued temporary, conditional exemptions for Tokenized Securities Venues (TSVs) and certain liquidity providers. The relief covers permissioned trading of National Market System (NMS) stocks through automated market makers and liquidity pools. It excludes synthetic tokens that provide exposure to an underlying security.