- TSV LLC, OKXICE, and Perpetuals.com are identified by the SEC as the initial three businesses to file notices of intent to run tokenized securities platforms via its Innovation Exemption.
- While the exemption maintains investor safeguards and mandates a minimum of 30 days of public notice, simply filing a notice does not grant a company regulatory approval from the SEC to begin operations.
The U.S. Securities and Exchange Commission (SEC) has published a list of three businesses that want to roll out blockchain-driven trading venues for tokenized U.S. equities under its recently established Innovation Exemption.
Based on the SEC’s official roster updated on October 21, the entities are TSV LLC, OKXICE, and Perpetuals.com. TSV LLC filed its notice of intent on September 23, OKXICE followed on October 4, and Kephas Corporation—operating under the name Perpetuals.com—submitted its paperwork on October 14.
These submissions follow the SEC’s September 17 launch of the Innovation Exemption, which provides eligible tokenized securities platforms with conditional, temporary relief from standard exchange definitions under federal securities regulations. This setup aims to let specific blockchain trading frameworks function under targeted guidelines while the agency collects public input on the initiative.
Nevertheless, getting listed by the SEC does not signify that these organizations have been cleared to launch. The regulatory body has made it clear that submitting a notice does not confirm a firm satisfies all requirements of the exemption.
SEC Sets Conditions for Tokenized Stock Trading
The exemption applies to certain tokenized National Market System equities, encompassing shares traded on national U.S. securities exchanges. It permits eligible platforms to leverage blockchain architectures, such as automated market makers and liquidity pools, provided they adhere to the order’s stipulations.
Every venue is required to display its operating notice on an openly accessible website no fewer than 30 calendar days ahead of launching activities. Furthermore, they must inform the SEC within a single business day following that notice’s publication.
The regulatory structure incorporates protections for investors. Tokenized shares must retain all entitlements and benefits tied to their standard traditional counterparts. Additionally, issuing companies whose equities are tokenized by external parties retain the right to contest their shares being featured on a platform operating under this exemption.
OKXICE—a collaborative enterprise uniting crypto platform OKX and Intercontinental Exchange, the owner of the New York Stock Exchange—has indicated its proposed venue would leverage the OKX X Layer network. Its initial filing pointed to upwards of 60 U.S. corporations for potential tokenization.
Both TSV LLC and Perpetuals.com have also filed notices, though their appearance on the SEC directory does not verify that their systems are currently active.
This regulatory exemption remains conditional and temporary; the SEC order is set to lapse five years following its publication within the Federal Register, unless the agency modifies or prolongs the program. These three submissions represent an initial phase in moving American stock trading onto blockchain-backed systems.
Frequently Asked Questions
What is the SEC’s Innovation Exemption?
Introduced on September 17, the Innovation Exemption grants qualifying tokenized securities venues temporary, conditional relief from standard federal exchange definitions, allowing them to test blockchain-based trading systems under specific conditions.
Which companies have submitted notices to the SEC?
The first three firms on the SEC’s list are TSV LLC, OKXICE, and Perpetuals.com (operated by Kephas Corporation).
Does appearing on the SEC list mean these platforms are approved?
No. Listing on the SEC’s roster does not mean a company has received approval to launch or that it officially satisfies the requirements of the exemption.
What conditions must tokenized trading venues meet?
Venues must publish their operating notice on a public website at least 30 calendar days before launching, notify the SEC within one business day of that publication, and ensure tokenized shares preserve the rights of traditional shares. Issuing companies can also object to having their stocks tokenized by third parties.
