According to CoinMeta, Chairman Paul Atkins announced the approval of an innovation exemption that allows certain tokenized NMS stocks to be traded on-chain. This order grants two types of temporary exemptions under Section 36(a)(1) of the Trading Act, exempting tokenized securities from exchange definitions and certain liquidity providers from dealer definitions. The federal securities law's anti-fraud and anti-manipulation provisions apply to all securities activities. The exemption comes with conditions for investor protection, including that TSV must be a U.S. entity and comply with OFAC sanctions regulations; only specific participants are allowed to trade; the tokenized NMS stocks must be tokenized by the issuer or a third party, and holders must enjoy equal rights. The issuer has the right to prevent its securities from being traded on TSV. The commission is seeking public comments on this matter and will subsequently establish permanent rules.