According to Crypto Briefing, Orca Chief Legal Officer Christopher Montagano said at Korea Blockchain Week that the U.S. Securities and Exchange Commission’s innovation exemption issued on Sept. 17 created a framework to test whether DeFi blockchain rails can operate more efficiently than traditional market infrastructure. He said the exemption offers conditional relief for five years, running through Sept. 17, 2031.
Under that framework, venues for tokenized securities and certain liquidity providers can run permissioned trading in tokenized U.S. equities without registering as exchanges or broker-dealers. Montagano said the exemption was designed specifically for automated market makers, or AMMs, but does not amount to a ruling on DeFi as a whole. He added that participants still need to comply with sanctions rules and obtain issuer consent, which sets the structure apart from permissionless DeFi.
Montagano also said Orca has been involved in discussions with the SEC since 2025 and began trading tokenized stocks in November of that year.
According to Crypto Briefing, Orca Chief Legal Officer Christopher Montagano said at Korea Blockchain Week that the U.S. Securities and Exchange Commission’s innovation exemption issued on Sept. 17 created conditions to test whether DeFi blockchain rails are more efficient than traditional infrastructure.
Montagano said the exemption provides conditional relief for five years, through Sept. 17, 2031. Under the framework, venues for tokenized securities and certain liquidity providers can operate permissioned trading in tokenized U.S. stocks without registering as exchanges or broker-dealers.
He also said the exemption was designed for AMMs, but does not represent a ruling on DeFi. Parties still need to follow sanctions rules and obtain issuer consent, distinguishing the framework from permissionless DeFi. Orca has taken part in discussions with the SEC since 2025 and began trading tokenized stocks in November that year.
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