The U.S. Securities and Exchange Commission has issued a release granting a five-year conditional exemption for the trading of tokenized National Market System stocks. This regulatory move establishes a framework for specific venues to list and trade digital representations of traditional equities under defined limitations.
The exemption restricts participation to Tokenized Securities Venues that list no more than 75 Tier 1 symbols. It also imposes volume caps and mandates that token holders retain identical rights to those associated with the underlying physical shares, ensuring parity in economic and governance benefits.
Key facts
- The SEC issued Release No. 34-106402 on September 18, 2026.
- The exemption is valid for a period of five years.
- Venues may list up to 75 Tier 1 symbols under this rule.
- Trading volume is capped at 0.25% of each stock’s prior-month average daily volume.
- Token holders must have mandatory rights parity with the underlying stock.
- Parity includes dividends, voting rights, and residual claims.
Why it matters
This decision creates a regulated pathway for integrating traditional equity markets with blockchain infrastructure. By setting clear boundaries on volume and asset eligibility while enforcing rights equivalence, the regulator aims to facilitate innovation in securities trading without compromising investor protections or market stability.