US SEC Commissioner: Will Not Predetermine TSV or Liquidity Providers as "Exchanges" or "Dealers"

PANews, September 18 news, 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 on-chain trading of stocks listed on major U.S. exchanges. The exemption establishes a new category called "Tokenized Securities Venue" (TSV), permitting trading through automated market maker (AMM) liquidity pools, while providing a "dealer" definition exemption for certain participants who provide liquidity to the TSV. Peirce said the measure aims to allow market participants to experiment, observing how tokenized NMS stocks trade in 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 predetermine that TSVs or their liquidity providers (LPs) constitute "exchanges" or "dealers."