The SEC is running a five-year experiment on Tokenized Securities Venues with strict trading volume limits tied to traditional market activity: 0.25% of average daily volume for Tier 1 stocks (S&P 500, Russell 1000) and 2.5% for Tier 2. Repeated breaches of these limits trigger an immediate three-month trading pause for that specific stock across affiliated exchanges, though investors retain ownership of the underlying asset. The framework separates three distinct concepts that apps may conflate: owning a token, owning shareholder rights, and having a place to sell. The SEC cites the need to limit systemic risks to the broader stock market during this experimental phase as justification for these restrictions.
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