SEC Staff Issues Additional Guidance on Innovation Exemption for Tokenized Securities as Three Firms File Venue Notices
SEC staff has issued additional guidance on the innovation exemption for tokenized securities trading venues, according to a client alert published on October 22 by the law firm Morgan Lewis. The alert said the staff also established a public list of entities that have notified the Commission of their intent to operate under the exemption, as a centralized resource for public companies and market participants.
Under the guidance, a venue must amend its public notice to indicate that the objection period has lapsed and identify the tokenized stock available for trading, the alert said. It also reinforced that two 30-day periods — the public objection period and the period after an issuer receives an issuer-specific notice at its principal executive office — may run concurrently, so public companies should monitor both venue public notices and notices delivered to the company when deciding whether to exercise objection rights.
On October 22, the SEC received formal notification of three tokenized venue plans, according to reports. The entities behind the proposals are TSV LLC, OKXICE, and Kephas Corp., targeting the Canton, X Layer, and Kronos X networks respectively, and seeking to facilitate trading of tokenized assets within the existing regulatory framework under the innovation exemption.
The SEC has not announced an approval decision on the proposed venues.
Published by GSM · USA (original Chinese edition)
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