SEC weighs 24-hour trading as it approves tokenized securities

September 17, 2026 at 08:03 PM2 min

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The U.S. SEC held a roundtable on expanding securities trading to around-the-clock hours on Thursday, the same morning it approved tokenized securities trading. Chairman Paul Atkins said preparations for longer trading are underway, while Commissioner Hester Peirce noted crypto markets "don't sleep."

Key Facts

The SEC granted a five-year temporary conditional exemption, Innovation Exemption, on September 17 for tokenized securities trading on certain on-chain venues.
The exemption applies to Tokenized Securities Venues (TSVs) that may trade tokenized NMS stocks through automated market makers and restricted liquidity pools.
SEC Chairman Paul Atkins said tokenization could enable real-time inventory management, reduce settlement failures, and mitigate abusive naked short selling.
Commissioner Hester Peirce said extended trading hours could lead to wider spreads, increased volatility, and less time to address technology issues.

Roundtable on 24-Hour Trading

The SEC hosted a roundtable at its Washington headquarters on Thursday, an hour after issuing its order to approve tokenized securities trading. Chairman Paul Atkins told securities lawyers that tradeable events are not constrained to market hours and that expansion will let investors react more quickly to events. Commissioner Hester Peirce noted that crypto markets "certainly don't sleep," while acknowledging concerns about wider spreads, increased volatility, and less time for technology fixes. Atkins said several needed preparations for the expansion are already underway or in place.

Tokenized Securities Exemption

The SEC issued a temporary conditional exemption, Innovation Exemption, on September 17 for tokenized securities trading on certain on-chain venues. The exemption covers Tokenized Securities Venues (TSVs) that may organize trading of tokenized NMS stocks through automated market makers and liquidity pools with restricted access. The SEC temporarily exempted such platforms from being classified as an "exchange" under the Securities Exchange Act of 1934. A separate exemption applies to certain liquidity providers using their own capital, who will not be considered dealers if they meet the conditions. Tokens may be issued by the issuer itself, a party acting on its behalf, or an independent third party, and holders must receive the same rights as owners of the corresponding class of common stock, including dividends and voting.