The U.S. Securities and Exchange Commission (SEC) has issued a temporary, conditional 'innovation exemption,' excluding tokenized securities trading platforms that meet specific requirements from the definition of an exchange, and has initiated a public comment period. The exemption applies only to qualified TSVs, allowing platforms facilitating tokenized stock trading to operate without registering as national securities exchanges. Starting in August 2026, Coinbase plans to launch tokenized stocks with dividend and voting rights on Base, creating a pathway for regulatory compliance. However, this exemption does not equate to full legalization.