Securitize Backs SEC’s Five-Year Relief for Tokenized Stock Trading

Securitize backed the SEC’s five-year relief for qualifying venues to trade certain tokenized U.S. stocks, continuing its case for bringing tokenized stocks within U.S. securities rules, and urged the agency to keep compliance restrictions in force when tokens are transferred.

The letter recommends embedding compliance rules in the tokens themselves so restrictions continue to apply after a transfer.

The SEC’s five-year conditional relief, issued Sept. 17, covers qualifying venues that trade certain tokenized National Market System (NMS) stocks through permissioned automated market makers (AMMs) and liquidity pools. Some liquidity providers also receive conditional relief from the dealer definition. The relief is limited to qualifying venues under the order and does not cover every tokenized-stock platform.

The order requires tokenized stocks to carry the same rights as equivalent traditional shares and gives issuers an opportunity to object to third-party tokens. Securitize’s letter supports the five-year program while seeking to preserve compliance conditions after transfers.