The Securities and Exchange Commission has opened a route for blockchain-based trading of US shares, allowing designated platforms to list tokenised stock without securing full exchange registration. The Innovation Exemption, issued on September 17, 2026, creates a five-year framework for trading tokenised NMS stock, including 24/7 on-chain trading, instant settlement and fractional ownership.
The SEC said the measure is its first official approval for trading blockchain-based tokenised equity in the United States. It forms part of the regulator's Project Crypto initiative, launched last year, which seeks to bring America's financial markets onchain.
Under the framework, authorised platforms known as Tokenized Securities Venues can create blockchain versions of publicly traded shares. Those venues will handle trading through automated market makers and liquidity pools. A tokenised listing may trade alongside the conventional version of the same security unless the issuer uses its right to stop the arrangement.
The exemption sets conditions intended to preserve the position of companies and investors. Broker-dealers must tell an issuer when tokenisation activity is planned. Companies must receive 30 days notice before tokenisation starts, and can object during that period. An objection prevents the company's securities from being traded as tokens.
Stock-token holders must have the same rights attached to traditional equity holdings, including the right to receive dividends and exercise voting rights. The exemption also applies volume caps, which the SEC said are intended to limit potential risks and major swings. The regulator has not specified the levels or formulas for those caps in the framework described.
SEC Chair Paul Atkins said: “The Innovation Exemption is designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards.” The SEC has also requested public comment on the exemption.
The decision addresses a dispute over whether platforms should be able to create tokenised representations of shares without the agreement of the companies concerned. Robinhood chief executive Vlad Tenev had publicly criticised the refusal by companies including AMC Entertainment and Apple to permit independent tokenisation of their shares. AMC chief executive Adam Aron described the practice as a “pirate” model.
The issuer-consent requirement means that platforms can offer tokenised listings only where a company does not exercise its veto during the notice period. The framework gives trading venues regulatory relief while retaining safeguards through issuer notification, opt-out rights and volume limits. It does not identify the platforms that will initially operate as Tokenized Securities Venues, nor does it set out how fractional ownership will work in practice.
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