What the SEC's "innovation exemption" means for tokenized stocks
Sept. 17, 2026 — The SEC has opened a five-year window for blockchain-based versions of U.S.-listed stocks to trade on new "tokenized securities venues," which may run automated trading pools without registering as exchanges. The relief runs through Sept. 17, 2031.
The SEC's fact sheet lists possible benefits for investors: round-the-clock trading, fractional ownership, near-instant settlement and the option to hold shares directly. The order also sets guardrails. Venues must verify that a token carries the same rights as the underlying stock, and must notify a company and give it a chance to object before listing a token created by an unrelated third party. Trading stops when the stock's primary exchange halts it, leverage is not allowed, and dollar trade data must be published within 10 minutes. Volume is capped; for the largest stocks, venues may list 75 symbols and trade up to 0.25% of average daily volume.
Each token must trade against another tokenized stock, a tokenized money market fund or a crypto asset such as a payment stablecoin, the kind covered by rules federal regulators are now proposing, including the Federal Reserve's a week later. The SEC is seeking comment, including on making the exemption permanent.
The wall: No trading venue has said it will use the exemption, and the comment deadline was not stated.
Tier: Confirmed (based on the SEC's release and fact sheet, not the full 60-page order)
Corrections
- Corrected Oct. 3, 2026: the notes on what this story is based on and what remains unknown were revised for clarity. The facts are unchanged.
Sources
- SEC release 2026-90
- SEC fact sheet
- Commissioner Uyeda statement
- Sidley Austin summary
- The Industry Spread (caps and conditions)
- Fintech & Digital Assets blog (pairing rule)
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