SEC announces conditional exemptive relief in tokenized securities trading after Clarity Act stalls
The Securities and Exchange Commission on Thursday some progress in the trading of tokenized stocks after the Clarity Act in the Senate.The regulator has granted temporary, conditional exemptive relief to tokenized securities venues to trade tokenized national market system stocks using permissioned automated market makers and liquidity pools.The trading of tokenized NMS stocks is subject to limits on the number of symbols and volume traded. The stocks will provide holders the same rights and privileges as does traditional NMS stock of an equivalent class.Before making a tokenized NMS stock available for trading by an unaffiliated third party, the tokenized securities venue must provide written notice and an opportunity to object to the issuer of the underlying NMS stock.The venue must stop trading in a tokenized NMS stock concurrently with any stoppage of trading in the underlying NMS stock on the primary listing exchange. It must provide public notice about its operations, trading activities, and the trading activities of its affiliates."Today, the Securities and Exchange Commission is taking a significant step forward, within its statutory authority, to bring America's capital markets into the digital age by facilitating on-chain trading of certain tokenized stocks through the 'Innovation Exemption'," said SEC Chairman Paul Atkins."As we take this important first step, we invite public comment on all aspects of the Innovation Exemption to help inform the Commission as it considers further changes," said Atkins.The exemptions are set to expire five years after publication.Robinhood Markets was trading 5.32% higher at $109.98 during pre-market trading. Circle Internet was up 3.02% after the market open to $82.88, while Bullish was +3.62% to $33.24. Coinbase was +1.52% to $167.01.Securitize , a platform for tokenizing and managing digital asset securities, was 17.12% higher at $9.10.Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.