The SEC just opened its first direct legal lane for onchain tokenized U.S. stocks. Its new 5-year Innovation Exemption lets permissioned AMMs trade real, rights-bearing tokenized stocks without the venue registering as an exchange or its LPs as dealers. What it means: > Tokenized stocks can now trade onchain in the U.S. through qualifying Tokenized Securities Venues (TSVs). > These HAVE to be real 1:1 stocks, carrying the same dividends, voting rights, etc. Synthetics and derivatives don’t qualify. > The model is still permissioned. Pools need allowlists/KYC, must follow OFAC rules, operate within volume/ticker caps, and give issuers the chance to veto listings. > Offshore stock-token markets aren’t going anywhere. This creates a compliant onshore alternative rather than eliminating synthetic markets abroad. > The big question is demand. Can a gated, compliant system attract meaningful volume when offshore alternatives are much easier to access? As they said they would, it appears CLARITY's failure has fired up the SEC and CFTC to pursue rulemaking on their own. I don't think this is the last exemption we'll be seeing...