The SEC’s temporary exemption for tokenized-stock trading sets ledger standards for venues, while the agency’s list of three notice filers does not establish whether any meets them.
The order requires a venue relying on the exemption to deploy public, auditable smart contracts on a public, permissionless ledger. The SEC describes a permissionless ledger as one that allows reading and writing without prior authorization. A venue may still limit access to its trading pools.
TSV LLC says its planned venue will run on Canton Network, which the company argues meets the SEC’s standard. It says trading pools will be limited to verified participants. Kephas Corporation d/b/a Perpetuals.com describes its planned Kronos X Public as an Ethereum-compatible layer 2 with permissioned trading pools. Both companies say trading has not begun.
The SEC’s notice-list page names TSV LLC, OKXICE TSV and Kephas as parties that filed notices of intent. The agency says appearing on the list does not establish that a filer meets the definition of a Tokenized Securities Venue or satisfies the exemption’s conditions. The order invites venue operators to consult SEC staff about whether a ledger qualifies.
The order also sets a process for stock tokenized by a third party unaffiliated with its issuer. The venue must send the issuer written notice, and the 30-calendar-day period starts when the issuer receives it. If the issuer objects within that period, the tokenized stock cannot trade on that venue under the exemption.
OKXICE’s Oct. 15 notice listed nine issuer objections to unaffiliated tokens tied to their shares. That is an Oct. 15 snapshot; OKXICE’s notice archive also lists a notice dated Oct. 23. Earlier coverage examined financing questions around the proposed OKXICE venue.
The exemption took effect Sept. 17 and runs through Sept. 17, 2031. The SEC is seeking public comment on whether to change its terms.
