SEC Innovation Exemption Opens Tokenized U.S. Stock License Trading: Orca Claims Verifiable DeFi Efficiency

Orca Chief Legal Officer Christopher Montagano stated at the Korea Blockchain Week that the innovation exemption released by the SEC on September 17 provides the conditions to verify whether DeFi blockchain tracks are more efficient than traditional infrastructure. This exemption offers a conditional relief for five years, until September 17, 2031; under this framework, tokenized securities venues and specific liquidity providers can operate tokenized U.S. stock licensed trading without registering as an exchange or broker-dealer.

Montagano indicated that this exemption is specifically designed for AMM but is not a ruling on DeFi; relevant parties must still comply with sanction rules and obtain issuer consent to distinguish it from unlicensed DeFi. Orca has been involved in SEC discussions since 2025 and began trading tokenized stocks in November of the same year.