The U.S. Securities and Exchange Commission (SEC) announced that it has formally approved a temporary conditional exemption framework ('Innovation Exemption'). It permits limited pilot trading of tokenized NMS stocks on specific on-chain venues, namely Tokenized Securities Venues (TSVs). The exemption offers temporary regulatory relief for TSVs. When providing tokenized stock trading via licensed automated market makers (AMMs) and liquidity pools, they will not be directly classified as an 'exchange' under the Securities Exchange Act of 1934 for the time being. It also delivers clear guidance for liquidity providers who deploy proprietary capital for market-making support.