SEC Clears a Path for Tokenized Stocks After Clarity Act Stumbles
The SEC is advancing a crypto policy shift by creating an “Innovation Exemption” for tokenized U.S. stocks after the Senate failed to advance the CLARITY Act. The exemption lets qualifying Tokenized Securities Venues trade tokenized versions of U.S.-listed equities on public, permissionless blockchains using automated market makers and liquidity pools without registering as national securities exchanges. Liquidity providers can also get separate relief from dealer registration rules. The relief is limited: it covers only real tokenized stocks with the same rights as ordinary shares, not price-tracking “synthetics.” Access to the venue will still be permissioned, the SEC will not individually approve each venue, and firms can operate after notifying the agency if they meet the conditions. The program begins immediately, lasts up to five years, and includes caps on listed names and trading volume. Issuers can block third-party tokenization by objecting within 30 days. The SEC says the move is a temporary bridge to future rulemaking.
