TradingKey - US SEC Launches New Rules for US Stock Tokenization as DeFi Sector Rallies Strongly, with HYPE Surging Over 10% and UNI Soaring Over 15%.
On September 17 ET, the U.S. Securities and Exchange Commission (SEC) issued an "Innovation Exemption" statement, opening up a clear and concrete path for the on-chain tokenization of U.S. stocks and traditional securities. This major regulatory catalyst directly stimulated the cryptocurrency market, triggering a broad-based rally in tokens across decentralized exchanges (DEXs) and on-chain derivatives platforms.
Uniswap (UNI) was the top performer, surging over 15% in the past 24 hours to approach $8, reaching a high since November 2025; followed by Hyperliquid (HYPE), which rose about 11% over the same period to break above $86, once again approaching its record high.
UNI price chart, Source: TradingView
The Innovation Exemption statement issued by the SEC establishes an interim compliance framework for on-chain trading of traditional securities and tokenized U.S. stocks, with key points as follows:
Policy Dimension | Core Rules and Implementation Details |
Exemption Duration and Scope | Provides a 5-year temporary conditional exemption for eligible Tokenized Securities Venues (TSVs) and liquidity providers, temporarily waiving cumbersome registration requirements for traditional exchanges and market makers. |
Trading Mechanism and On-Chain Technology | Allows platforms to trade through permissioned Automated Market Makers (AMMs) and liquidity pools; requires smart contracts to be deployed on public permissionless blockchains, be open-source, and pass security audits. |
Equivalence of Rights | Synthetic derivatives are strictly prohibited; holders of tokenized stocks must enjoy rights fully identical to traditional spot equities (including dividend distributions, voting rights, etc.). |
Issuer Veto Right | If tokenization is conducted by a third party other than the issuer, the TSV must provide 30 days' advance written notice to the listed company of the underlying stock; if the listed company objects, the platform may not list the tokenized stock. |
Trading Risk Control and Market Synchronization | Limits are set on the types and quantities of tradable tokens as well as trading volume; when the underlying stock on a traditional exchange triggers a circuit breaker or trading halt, trading of the corresponding on-chain token must be halted simultaneously. |
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