The US Securities and Exchange Commission approved a temporary exemption that permits limited trading of tokenized US stocks on designated onchain platforms, effective Thursday. The exemption, known as the Innovation Exemption, allows Tokenized Securities Venues (TSVs) to facilitate permissioned trading of tokenized National Market System stocks through automated market makers and liquidity pools. The SEC imposed conditions including transaction transparency, recordkeeping, technology safeguards, and mandatory publication of US dollar‑denominated trade data such as prices, trade sizes, timestamps, pool addresses, end‑of‑day pool sizes and daily volumes. Commissioner Mark Uyeda emphasized that the exemption is intended to be tightly controlled, with symbol and volume limits in place, and that the agency will use the collected data to evaluate onchain securities trading and shape future regulatory rules. The SEC is now soliciting public comment on the framework, requesting input on data, case studies and insights from live or test environments. The agency had been developing this exemption for several months; in February, SEC Chair Paul Atkins indicated the regulator was exploring a short‑term structure to permit limited tokenized securities trading via automated market makers while longer‑term rules are drafted. The move comes amid broader legislative activity, as the US House tax committee recently advanced a crypto tax overhaul with a 38‑5 vote.