Rumors emerge of SEC’s major tokenization exemption for direct on-chain trading

Huo Xing Finance reports that on September 9, Andy, founder of The Rollup, posted that market rumors suggest the U.S. Securities and Exchange Commission (SEC) is preparing to introduce its largest-ever tokenization regulatory exemption, potentially allowing tokenized securities to trade solely through a registered transfer agent without requiring a broker-dealer license or compliance with traditional exchange or ATS rules, and reportedly covering both U.S. retail and overseas investors. Andy stated that if true, the potential impact would be significant: tokenized funds could issue and trade directly as on-chain tokens, with the transfer agent maintaining legal ownership records on-chain, while the underlying assets held by the fund—such as stocks and bonds—could also be further tokenized, creating an on-chain trading system of “fund tokens + underlying asset tokens.” Andy later added that a major fund has reportedly received a “green light” from the SEC, though official confirmation has not yet been issued. He speculated that ARK, Fidelity, or BlackRock could be potential participants. If the policy is ultimately implemented, U.S. asset management firms may accelerate the issuance of native equity tokens to capture 24/7 liquidity and on-chain distribution channels, rather than waiting for third parties to mirror traditional securities as tokens. He further linked this potential regulatory shift to recent efforts by the Trump administration to open up crypto regulation and the CFTC’s push to bring perpetual contracts to the U.S. market, suggesting that the U.S. regulatory environment may be gradually opening the policy gates for on-chain finance.