Raye Hadi(@rhadiARK):Top 10 takeaways from SEC innovation exemption: 1. The main thing the IE does is define the requirements for a venue to host tokenized equity trading onchain. Refers to these venues as TSVs (tokenized securities venues) and exempts them from the "exchange" definition so they avoid being classified as a 'trading center, ATS, or market center'. 2. The second biggest thing the IE does is define which types of tokenized equities are allowed. The IE only covers native issuer tokenized equities or third party custodied ones that carry full ownership through (dividends + full voting rights). Not synthetics. 3. Neither Coinbase nor Robinhood's tokenized equities meet the standard today, but Coinbase is much closer. Robinhood is going to need to restructure the entire ownership wrapper model, Coinbase mainly needs to pass through voting. 4. Does not apply to the full defi stack. It prohibits financing and hypothecation, so lending/leverage/looping aren't allowed in the current framework. 5. Requires TSV smart contracts to live on "public, permissionless blockchains". Base and Robinhood Chain are likely eligible (the single sequencer raises some questions, but I believe its dependent on open read/write access). Discretion seems to be left to SEC staff, arguably bullish Ethereum and Solana. 6. Exempts TSVs from RegNMS, huge. RegNMS would've required defi venues to adhere to requirements they mechanically cannot support (best bid, trade through,..). This exemption is what allows tokenized equity trading to exist onchain. 7. Exempts LPs from dealer registration. LPs are protected as "covered firms" and therefore can market make and seed pools without needing to register. 8. TSVs must be US users, permission participants, coordinate halts with the SEC and consent to exams, and can only host secondary trading. 9. Per name tiered volume caps. The onchain volume of stocks in tier 1 can trade at or below 0.25% of prior month offchain average daily volume (ADV), stocks in tier 2 at 2.5% offchain ADV. 10. This exemption sunsets after 5yrs; not meant to be permanent. Designed to be supplanted by more durable SEC rulemaking/legislation.

2026.09.17 15:43

Top 10 takeaways from SEC innovation exemption: 1. The main thing the IE does is define the requirements for a venue to host tokenized equity trading onchain. Refers to these venues as TSVs (tokenized securities venues) and exempts them from the "exchange" definition so they avoid being classified as a 'trading center, ATS, or market center'. 2. The second biggest thing the IE does is define which types of tokenized equities are allowed. The IE only covers native issuer tokenized equities or third party custodied ones that carry full ownership through (dividends + full voting rights). Not synthetics. 3. Neither Coinbase nor Robinhood's tokenized equities meet the standard today, but Coinbase is much closer. Robinhood is going to need to restructure the entire ownership wrapper model, Coinbase mainly needs to pass through voting. 4. Does not apply to the full defi stack. It prohibits financing and hypothecation, so lending/leverage/looping aren't allowed in the current framework. 5. Requires TSV smart contracts to live on "public, permissionless blockchains". Base and Robinhood Chain are likely eligible (the single sequencer raises some questions, but I believe its dependent on open read/write access). Discretion seems to be left to SEC staff, arguably bullish Ethereum and Solana. 6. Exempts TSVs from RegNMS, huge. RegNMS would've required defi venues to adhere to requirements they mechanically cannot support (best bid, trade through,..). This exemption is what allows tokenized equity trading to exist onchain. 7. Exempts LPs from dealer registration. LPs are protected as "covered firms" and therefore can market make and seed pools without needing to register. 8. TSVs must be US users, permission participants, coordinate halts with the SEC and consent to exams, and can only host secondary trading. 9. Per name tiered volume caps. The onchain volume of stocks in tier 1 can trade at or below 0.25% of prior month offchain average daily volume (ADV), stocks in tier 2 at 2.5% offchain ADV. 10. This exemption sunsets after 5yrs; not meant to be permanent. Designed to be supplanted by more durable SEC rulemaking/legislation.