Overview
- The SEC adopted a five-year Innovation Exemption that lets qualified Tokenized Securities Venues use permissioned automated market makers to trade tokenized National Market System stocks.
- The order, effective Thursday, September 17, 2026, requires tokens to provide dividends, voting and redemption rights that match the underlying shares and imposes limits on trading volume and the number of symbols a venue can offer.
- Analysts say Coinbase, Robinhood and Circle are the most likely early beneficiaries because Coinbase already has tokenization and custody products, Robinhood can convert offshore synthetic tokens to full-ownership tokens with product changes, and Circle could see higher demand for USDC settlement.
- Practical hurdles remain: Coinbase would need AMM-based trading or new infrastructure because its exchanges use central limit order books, and Robinhood must add onchain voting and redemption mechanics before its tokens can qualify under the exemption.
- The five-year trial runs through September 17, 2031, is open for public comment, and is deliberately constrained by issuer opt-out rights, synchronized halt rules and trading caps to limit disruption to Nasdaq and NYSE and to produce data for potential permanent rules.