SEC Grants Innovation Exemption for On-Chain Trading of Tokenized NMS Stocks

The exemption's significance lies less in the relief itself than in its conditions: the SEC is effectively drawing a line between tokenized representations of real NMS stocks and synthetic products, which are barred outright. That distinction matters for tokenization platforms and market makers whose models depend on how closely an on-chain instrument maps to the underlying equity. The open question is how the four conditions are interpreted in practice, and whether this conditional relief becomes a durable framework or remains a temporary accommodation.