The Securities and Exchange Commission (SEC) authorized regulated US stocks to trade on permissioned blockchain venues for a five-year period. This decision follows the failure of the CLARITY Act in the US Senate, which fell short of the 60 votes needed to advance, obtaining only 49 votes against 50. The SEC created a framework for Tokenized Securities Venues (TSVs), platforms using automated market makers and liquidity pools that receive temporary relief from exchange registration requirements under the Securities Exchange Act. Tokenized stocks have reached a record market capitalization of $3.2 billion, up 1,219 percent over the past year, with $15.75 billion in decentralized exchange trading volume over the past 30 days. The framework includes significant limitations: issuers retain veto power over the tokenization of their securities and volume caps apply to trading activity.
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