U.S. SEC Eases Regulations for Tokenized Securities Platforms: "Traditional Finance Must Come In" [Crypto Briefing]

[Financial News] U.S. financial authorities have introduced regulatory relief for tokenized securities platforms by exempting them from the requirement to register as exchanges. According to the virtual asset industry on the 18th, the SEC granted tokenized securities trading platforms (TSVs) innovative exemptive relief from the exchange registration requirement under the Securities Exchange Act. The measure takes effect immediately and will remain in force for five years. It is a temporary, conditional exemption designed to facilitate on-chain stock trading, allowing platforms that meet certain requirements to trade tokenized shares through authorized automated market makers and liquidity pools. Some liquidity providers will also be exempt from the requirement to register as securities dealers.
The exemption comes with conditions intended to protect investors. Tokenized shares will be subject to caps on the number of securities available for trading and on trading volume, while holders must receive the same rights as holders of traditional shares. Smart contracts must be deployed on public blockchains and remain auditable. Companies are also effectively given veto power. A third party seeking to tokenize a company's shares must notify the company in advance, and the tokens cannot be traded if the company objects.
The industry is also increasingly calling for traditional finance investors to enter the tokenization (RWA) market. Carlos Domingo, CEO of tokenization platform Securitize, attended the Avalanche (AVAX) Summit in New York and said, "Existing crypto investors alone cannot take the tokenization market to the next level," adding, "To popularize RWA, we need to bring in even traditional finance investors who have never used a hardware wallet as buyers."
[email protected] Han Young-jun Reporter