The SEC's five-year Innovation Exemption establishes conditional relief for Tokenized Securities Venues and certain liquidity providers to support secondary trading of qualifying tokenized U.S. stocks through permissioned automated market makers and liquidity pools. Eligible Tokenized NMS Stock must carry the same dividend, voting and liquidation rights as the corresponding share, while synthetic instruments and primary issuance are excluded. The framework caps the number of eligible symbols and trading volume, requires public and auditable smart contracts on a public permissionless ledger, and gives issuers 30 days to object to unaffiliated third-party tokenizations. The SEC is seeking comment on 10 questions before deciding whether to make, alter or expand the temporary regime. The exemption remains subject to its five-year sunset, while the agency's broader reassessment of crypto policy and previous descriptions of the measure as guidance leave its longer-term status dependent on future SEC action, rulemaking or legislation.