SEC Task Force Details On-Chain Tokenized Equity Trading Requirements at SIFMA Conference
CIE News ·
What Happened
At the SIFMA Conference, SEC Crypto Task Force Chief of Staff Richard Gabbert and Commissioner Hester Peirce provided specific details regarding the SEC's conditional Innovation Exemption order. This order authorizes Tokenized Securities Venues to conduct transactions involving tokenized NMS stocks on public blockchains utilizing Automated Market Makers, without the requirement of registering as traditional national securities exchanges.
Why It Matters
The conditional Innovation Exemption order facilitates the trading of tokenized equities on public permissionless blockchains through Automated Market Makers. This regulatory action represents an interim step towards establishing permanent rulemaking, which is anticipated to be similar to Regulation ATS.
What We Know
SEC Crypto Task Force Chief of Staff Richard Gabbert and Commissioner Hester Peirce outlined details at the SIFMA Conference.The details pertain to the SEC's conditional Innovation Exemption order.This order allows Tokenized Securities Venues to execute transactions in tokenized NMS stocks.These transactions can occur on public blockchains using Automated Market Makers (AMMs).Venues operating under this order are not required to register as traditional national securities exchanges.The order serves as an interim regulatory measure.It is a precursor to permanent rulemaking, expected to resemble Regulation ATS.