SEC Approves Conditional Trading for Tokenized Stocks on AMMs
The SEC has granted a five-year conditional exemption allowing tokenized National Market System stocks to be traded on permissioned automated market makers. This decision coincides with the CFTC's introduction of broker relief for passive software providers.
SEC's Conditional Exemption
On Thursday, the Securities and Exchange Commission (SEC) announced a significant move by issuing a five-year conditional exemption. This exemption permits the trading of tokenized National Market System (NMS) stocks on permissioned automated market makers (AMMs).
CFTC's Software Relief
In a related development, the Commodity Futures Trading Commission (CFTC) staff has also introduced relief for introducing brokers regarding passive software providers. This announcement came on the same day, demonstrating a coordinated effort to adapt regulatory frameworks in the evolving crypto landscape.
Context of Regulatory Changes
These regulatory changes follow recent events where the Senate blocked the CLARITY Act, which aimed to provide clearer guidelines for crypto regulations. Additionally, the chairmen of the SEC and CFTC indicated their intention to establish crypto rules independently of the CLARITY Act. Following these announcements, Uniswap's token experienced a notable rise of 19.8% within 24 hours.