The Innovation Exemption
Release No. 34-106402 runs from September 17, 2026 to September 17, 2031. It lets a Tokenized Securities Venue (TSV) trade tokens of NMS stocks under conditions, and these are the conditions that set deadlines.
A company has 30 calendar days from receiving a TSV's Issuer Notice to object. An objection in time keeps that TSV from trading a third party's token of its stock.
A TSV that receives a timely objection must amend its public Notice within five business days.
A TSV publishes its Notice at least 30 calendar days before it operates, and tells the Commission within one business day.
Each trade is public, in U.S. dollars and machine-readable, within ten minutes.
When the listing exchange halts a stock, each TSV stops trading its token concurrently and tells its participants immediately.
Tier 1 stocks: up to 75 symbols and 0.25% of prior-month average daily volume. Tier 2: up to 250 symbols and 2.5%. Affiliated TSVs count together. A second breach pauses that token for three months.
Kept for the life of the exemption plus three years, open to Commission staff at any time.
A TSV sends it to the address on the cover of the company's Exchange Act reports (footnote 63). In practice it can reach a corporate secretary or another filed address first.
Sources: Release No. 34-106402 (Federal Register, September 22, 2026); the TSVs' public Notices.