The U.S. Securities and Exchange Commission has issued temporary, conditional exemptive relief that lets qualifying Tokenized Securities Venues (TSVs) trade certain tokenized NMS stocks through permissioned automated market makers and liquidity pools — and that framework is what XRPL watchers are debating today, not a green light for the ledger’s public AMM.
Coverage on Sept. 24 (ICOBench and secondary desks summarizing Release No. 34-106402 / Federal Register notice published Sept. 22) stresses the order does not approve XRP, the public XRP Ledger, or XRPL’s open AMM for securities trading, and it does not change XRP’s regulatory classification.
What the relief actually does
Under the Innovation Exemption framed by SEC Chairman Paul Atkins’s Project Crypto agenda (Sidley Austin summary), qualifying TSVs get a time-limited exemption from the Exchange Act “exchange” definition, and certain liquidity providers get relief from “dealer” status when supplying tokenized NMS stock into AMM pools with proprietary capital. Sidley dates the five-year window from Sept. 17, 2026 through Sept. 17, 2031, subject to conditions and caps. Eligible tokenized NMS stock includes issuer- or third-party-tokenized securities; synthetics and security-based swaps are out.
TSVs are permissioned by design: venues set access standards and control who joins each liquidity pool. That is the opposite of XRPL’s protocol-level AMM, which is structurally open — anyone can create or fund eligible pools, with no built-in identity, issuer coordination, or surveillance layer.
Why XRPL’s AMM is not a drop-in fit
XRPL already runs a native AMM integrated with its order-book DEX. Liquidity providers deposit paired assets and receive LP tokens; trades route to the better of the book or the pool. That infrastructure predates the SEC order and was not built for permissioned securities trading. Any compliant application on XRPL-style rails would need access controls layered on top — the public AMM cannot simply be repurposed as a TSV.
Treat this as an infrastructure and regulatory-positioning story for tokenized equities — not an XRP price call or an approval of XRPL for securities trading. Not investment advice.
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