Tokenization is moving faster than Washington
The SEC introduced a five-year conditional exemption allowing qualified onchain venues to trade certain tokenized U.S. stocks using automated market makers and liquidity pools. The framework imposes investor-protection safeguards, including permissioned participation, limits on trading, equivalent shareholder rights, auditable smart contracts, and halts aligned with the underlying shares. The measure offers a temporary testing ground, not permanent rules. Meanwhile, a Senate motion to advance the Digital Asset Market Clarity Act failed, leaving broader statutory guidance unresolved. The author argues that regulatory clarity is essential for investment in tokenized-market infrastructure and says Congress must eventually provide durable rules as blockchain-based securities markets develop.
