Tokenized Stock Trading: How the SEC's 5-Year Trial Works
The U.S. Securities and Exchange Commission has created a five-year regulatory pathway for limited onchain trading of tokenized U.S. equities, marking one of the clearest attempts yet to bring blockchain-native market structure into the National Market System. On September 17, 2026, the SEC issued its “Innovation Exemption,” granting temporary and conditional relief to qualifying Tokenized Securities Venues, or TSVs, that use permissioned automated market makers and liquidity pools to facilitate tokenized stock trading. The relief also covers certain liquidity providers that would otherwise potentially fall within the Exchange Act definition of a dealer











