- The SEC lists TSV LLC, OKXICE and Perpetuals.com as the first three firms to submit notices of intent to operate tokenized securities venues under its Innovation Exemption.
- The exemption requires at least 30 days of public notice and preserves investor protections, but filing a notice does not mean a company has SEC approval to launch.
The U.S. Securities and Exchange Commission (SEC) has listed three companies seeking to launch blockchain-based trading platforms for tokenized U.S. stocks under its new Innovation Exemption.
The firms are TSV LLC, OKXICE and Perpetuals.com, according to the SEC’s official list, updated October 21. TSV LLC submitted its notice of intent on September 23, followed by OKXICE on October 4 and Kephas Corporation, which operates as Perpetuals.com, on October 14.
The filings come after the SEC introduced its Innovation Exemption on September 17, giving qualifying tokenized securities venues temporary, conditional relief from the usual definition of an exchange under federal securities law. The framework is designed to allow certain blockchain-based trading systems to operate under specific conditions while the regulator gathers feedback on the approach.
Still, appearing on the SEC’s list does not mean the companies have received approval to launch. The regulator has explicitly stated that submitting a notice does not establish that a firm meets the exemption’s requirements.
SEC Sets Conditions for Tokenized Stock Trading
The exemption covers certain tokenized National Market System stocks, which include shares listed on U.S. national securities exchanges. It allows qualifying venues to use blockchain-based systems, including automated market makers and liquidity pools, subject to the order’s conditions.
Each venue must publish its operating notice on a publicly accessible website at least 30 calendar days before beginning operations. It must also notify the SEC within one business day after publishing the notice.
The framework includes safeguards for investors. Tokenized shares must preserve the rights and privileges associated with their corresponding traditional shares. Companies whose stocks are tokenized by third parties can also object to their shares being offered through a venue under the exemption.
OKXICE, a joint venture involving crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, has said its planned platform would use OKX’s X Layer network. Its notice initially listed more than 60 U.S.-listed companies for potential tokenization.
TSV LLC and Perpetuals.com have also submitted notices, but their inclusion on the SEC’s list does not confirm that their platforms are operational.
The exemption is temporary and conditional, with the SEC’s order scheduled to expire five years after its publication in the Federal Register unless the agency changes or extends the framework. The three filings mark an early step in efforts to bring more U.S. stock trading onto blockchain-based infrastructure.
