Three SEC entities apply for tokenized securities exemption, and compliance is imminent

According to Woofun AI, on October 22, the US Securities and Exchange Commission (SEC) officially disclosed that three entities, TSV LLC, OKXICE TSV, and Perpetualscom, have submitted applications under newly introduced innovative exemptions to qualify to operate tokenized securities exchanges (TSV). This move marks an acceleration in the field from an abstract rule-making stage to a substantial implementation stage.

By thoroughly disassembling the background and technical structure of these three applicants, we can clearly see the differentiated layout of traditional financial giants and Web3 native forces in choosing the underlying network. TSV LLC is co-owned by Ali Abrar, co-founder of Obsidian Systems, and Ryan Trinkle, where Ryan Trinkle also serves as a board member of the Canton Foundation. The platform first submitted an application on September 23 and plans to build its operating infrastructure on the Canton Network.

As a joint venture between OKX and ICE Markets (ICE.US), OKXICE chose OKX Layer, an Ethereum second-layer network, as the technology base, and its application was submitted on October 4. Another applicant, Kephas Corp., a US subsidiary of Perpetuals.com, submitted an application on October 14. The platform intends to operate on Kronos X Public, a public, unlicensed second-tier network using a licensed trading pool.

According to data compiled by Woofun AI, these three institutions intensively submitted applications in just one month, reflecting the market's close attention and quick response to the SEC Innovation Exemption Framework. The parallel advancement of different technology paths also indicates a diversified competitive pattern for future tokenized securities trading infrastructure.

The SEC has set strict operational prerequisites and information transparency requirements in terms of compliance processes and regulatory red lines. According to regulations, any tokenized securities trading platform (TSV) must publish a notice containing information on all the requirements of the exemption order at least 30 calendar days in advance on its public website before officially commencing operation. The exemption order was posted on September 17, 2026. Within 1 working day after the TSV announcement is issued, the platform is also required to submit a separate written notice to the SEC via email indicating that it intends to operate in accordance with the TSV exemption rules. The notice must include contact information such as the platform's email address, phone number, and URL of the TSV announcement's website. The SEC specifically emphasized that filing an application does not mean that the entity has met the definition of a “tokenized securities trading platform” under the Innovation Exemption Order, nor does it mean that it has proven that it complies with the conditions of the exemption rules, and that SEC staff will not determine the substantive compliance and information accuracy of the TSV announcement or notice of intent to operate. If a subject withdraws its TSV notice, its name will be removed from the list of applications upon withdrawal.

This strict disclaimer and notification mechanism aims to clarify regulatory boundaries, prevent the market from misinterpreting applications as official endorsements, and also reserve space for possible subsequent regulatory intervention. For details, please refer to the “US SEC Launches Innovative Exemption from Tokenizing US Stocks to Be Traded on Licensed AMM DEX” article previously published by Golden Finance.

Meanwhile, SEC Trading and Markets staff updated the Frequently Asked Questions (FAQ) on tokenized securities innovation exemptions to further clarify the scope and operation details of the exemption. The exemption order conditionally exempts some distributed ledger trading platforms from applying the definition of 'exchange' in section 3 (a) (1) of the 1934 Securities Exchange Act;

At the same time, some liquidity providers for tokenized NMS shares are exempted from applying the definition of 'trader' in section 3 (a) (5) of the Exchange Act. In response to question 1, the staff pointed out that TSV should publish an announcement after all operating mechanisms and entry standards have been implemented and prepared for official launch. The announcement should be in plain English, clear, simple, and easy to understand, and continuously revised to ensure that the information is updated in real time. In response to question 2, when preparing a public announcement, TSV needs to specify all the subjects of the trading pair with tokenized NMS shares on the platform, including tokenized NMS stocks, non-securities crypto assets, and tokenized money market funds; TSV cannot operate until the 30-day announcement period ends, but it can list tokenized NMS shares that have submitted notice from the issuer and mark that the objection period is still in progress; if the issuer fails to submit the issuer's objection notice on time, TSV can only list the shares and receive the revised announcement; if the issuer fails to submit the issuer's objection notice on time, TSV can list the shares and receive the revised announcement; if the issuer fails to submit the issuer's objection notice on time, TSV can list the shares and receive the revised announcement; if the issuer fails to submit the issuer's objection notice on time, TSV can list the shares and receive the revised announcement; if the issuer fails to submit the issuer's objection notice on time, TSV can list the shares and receive the revised announcement; if the issuer Notice of meeting , then it cannot be listed and must be specified. In response to question 3, the SEC will publish a list of all entities that have submitted written notices and plan to operate in accordance with the TSV exemption rules.

The publication of this series of FAQs provides market participants with more clear operational guidelines, helps reduce compliance uncertainty and promote the standardized development of tokenized securities transactions.