According to CoinMeta, Commissioner Hester M of the SEC Committee issued a statement stating that the "Innovation Exemption" approved by SEC allows "tokenized securities venues" (TSV) to trade NMS stocks on-chain, and exempts the definitions of "exchanges" and "dealers" for TSV and certain liquidity providers. This exemption is aimed at U.S. entities, and issuers have the option to opt out. Hester M emphasized that this policy is intended to provide a framework for on-chain stock trading and is unrelated to DEFI; peer-to-peer transactions using smart contracts that do not require permission do not need such an exemption.