US SEC Commissioner: Will Not Pre-Determine TSV or Liquidity Providers as "Exchanges" or "Dealers"

PANews, September 18 - U.S. Securities and Exchange Commission (SEC) Commissioner Hester M. Peirce stated that the "innovation exemption" has been implemented. The SEC issued an order today granting a time-limited exemption allowing stocks listed on major U.S. exchanges to conduct on-chain trading. The exemption establishes a new category, "Tokenized Securities Venue" (TSV), permitting such venues to operate via automated market maker (AMM) liquidity pools, while also providing a "dealer" definition exemption for certain participants providing liquidity to TSVs. Peirce noted that this measure aims to allow market participants to experiment, observing how tokenized NMS stocks trade across different on-chain scenarios and interact with traditional markets, thereby accumulating data for formulating long-term regulatory rules. She also emphasized that the exemption is not targeted at decentralized finance (DeFi), and the SEC will not pre-determine whether TSVs or their liquidity providers (LPs) qualify as "exchanges" or "dealers."