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SEC Issues “Innovation Exemption” to Facilitate the Trading of Tokenized NMS Stock and Request for Comment

The U.S. Securities and Exchange Commission on Sept. 17, 2026 issued a temporary, conditional exemptive order — dubbed the “Innovation Exemption” — allowing certain Tokenized Securities Venues (TSVs) to be excluded from the Exchange Act definition of “exchange” to trade tokenized National Market System (NMS) stock via permissioned automated market makers and liquidity pools. The order also temporarily exempts certain liquidity providers in those AMM pools from the Exchange Act definition of “dealer.”