The @SECgov issued the long-anticipated “Innovation Exemption” today, to address onchain trading of tokenized securities and “Tokenized Securities Venues” (TSVs). This is a very important first step in bringing much-needed clarity to crypto market participants and users.  The order provides conditional exemptive relief from the Securities Exchange Act of 1934 definitions of “exchange” and “dealer” for certain trading platforms and liquidity providers that facilitate the trading of tokenized securities. While the order anticipates trading via permissioned automated market markers and liquidity pools, smart contracts used by a TSV must be auditable, public, and deployed on a public, permissionless distributed ledger. The relief is time-limited and subject to certain conditions, but this is undeniably a big step forward for those building on public blockchain networks.  We applaud the SEC staff and Chairman @SeCPaulSAtkins for working proactively to enable responsible innovation in America. The DEF team looks forward to continuing engagement with SEC staff and providing comments to the innovation exemption to assist the SEC in moving to proposed rulemaking. As always, DEF will work to ensure that DeFi technology is accurately described and that developers are sufficiently protected under securities laws.