SEC to Introduce Innovation Exemption for Tokenized Stocks
The U.S. Securities and Exchange Commission (SEC) is set to unveil a new “innovation exemption” for tokenized stock trading, which may allow decentralized platforms like Hyperliquid to operate in the U.S. This regulatory framework could facilitate the trading of crypto tokens representing stock shares without full broker-dealer registration, potentially starting as early as May 18, 2026.
Currently, Hyperliquid dominates the decentralized perpetual futures market, holding over 70% of open interest and is projected to generate approximately $619 million in annual revenue from trading fees. This move by the SEC could legally enable Hyperliquid to expand its user base in the U.S. market, which is significantly larger than its current international audience.
However, the exemption is not permanent and is designed as an experimental measure, raising concerns about the potential risks and competition in the evolving cryptocurrency landscape.
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