Perpetuals.com announced plans to offer tokenized U.S. stocks through the Securities and Exchange Commission’s five-year Innovation Exemption, with the proposal subject to a 30-day notice period and compliance with the framework’s conditions. The company said the launch would depend on meeting notice requirements, satisfying regulatory conditions, and completing technical implementation. SEC rules require that qualifying stock tokens grant rights matching those of the underlying conventional shares, including dividend and voting rights. The proposal follows an agreement to tokenize more than $300 million in physical commodities. Perpetuals.com Ltd, which trades on Nasdaq under the ticker PDC, outlined its intent in an Oct. 14 announcement, stating it would rely on the SEC’s temporary exemption for Tokenized Securities Venues. The release accompanying the announcement included a notice of intent to use the framework. The company identified completion of the 30-day period after publication of its venue notice as a condition for proceeding. Additional factors that could affect the offering included compliance with the exemption, technical implementation, regulatory developments, market conditions, and user adoption. Under the proposed structure, traders would access U.S. equities via blockchain-based tokens, with features such as 24/7 trading, near-instant settlement, and fractional ownership. The company emphasized that users would retain full dividend and voting rights. For products to qualify, the SEC mandates that venues verify token holders receive the same rights and privileges as owners of equivalent conventional shares. The agency’s conditions also require trading to halt when the underlying stock is suspended on its primary exchange, limiting the continuity of trading. The SEC’s five-year exemption, announced on Sept. 17, covers tokenized National Market System stocks traded through permissioned automated market makers and liquidity pools. Products offering only synthetic exposure to a stock’s price do not qualify. Perpetuals said it would build on its existing European tokenization platform, citing its founding team’s prior work in 2021 that enabled tokenized stock products on exchanges including Binance, FTX, and Bittrex. The team also previously delivered pre-IPO contracts linked to Coinbase, Airbnb, and Robinhood. The SEC’s framework includes conditional relief from the definition of an exchange under the Securities Exchange Act of 1934 and from the dealer definition for certain firms supplying tokenized shares to trading pools. Venues must use public, auditable smart contracts deployed on a public, permissionless blockchain, though access to trading pools remains permissioned. Public disclosures about venue operations, trading activity, and transactions involving affiliates are required. For shares tokenized by an unaffiliated third party, the SEC requires written notice to the underlying stock issuer and an opportunity to object before trading begins. A separate requirement, detailed in a Sept. 23 report, mandates a 30-day waiting period after the issuer receives notice before trading can commence. If the issuer objects during that period, the venue may not offer the affected tokenized stock through the exemption. The report noted that tokenization should preserve the investor’s claim on the company while altering how shares trade and settle, with dividends, voting rights, and claims on remaining assets following liquidation among the rights covered. Trading caps are part of the SEC’s five-year framework, which limits eligible stock symbols and trading volume. The agency said the relief expires five years after publication and invited public comments on potential changes. A separate Oct. 2 report on Robinhood’s stock token limits described how those restrictions could affect platforms with substantial activity. Robinhood crypto executive Johann Kerbrat said the company was still reviewing the framework and that its existing stock-token volumes could reach some of the limits. Tier 1 products face caps of 75 symbols and 0.25% of the underlying stock’s average daily share volume during the previous month, while Tier 2 products face caps of 250 symbols and 2.5% of the underlying stock’s average daily volume. Perpetuals cited its European infrastructure and a recent commodities agreement as part of its expansion plans. The company serves PM MTF Ltd, the operator of the European-licensed Perpetual Markets Multilateral Trading Facility, which it described as compliant with MiFID II, MiCA, DORA, and EMIR, and as providing white-label infrastructure for trading partners. Perpetuals also referenced a recent exchange agreement involving more than $300 million in physical commodities, including a linked announcement with Datavault AI for tokenized commodities. The proposal comes amid broader scrutiny of tokenized assets, with analysts warning of potential risks related to leverage and market volatility.