A new U.S. Securities and Exchange Commission exemption for tokenized stock trading through automated market makers has drawn fresh attention to the XRP Ledger's native pools, live since 2024.
Key Points:
- The SEC's Innovation Exemption lets permissioned venues trade tokenized U.S. stocks through AMM liquidity pools until 2031.
- The XRP Ledger has had a native AMM since Mar. 2024, but the order names no specific blockchain.
- XRP slid toward $1.50 on Sept. 24 but kept most of a weekly gain of nearly 16%.
SEC Innovation Exemption
The SEC issued the order on Sept. 17, giving temporary relief to so-called Tokenized Securities Venues that trade tokenized U.S.-listed stocks through permissioned AMM liquidity pools. Qualifying venues fall outside the legal definition of an exchange, while some liquidity providers are not treated as dealers. Both exemptions run through Sept. 17, 2031, while the agency weighs permanent rules.
Tokenized shares must carry the same economic and voting rights as the originals, and issuers get 30 days to object when a third party tokenizes their stock, a legal breakdown of the order shows. Venues must also halt trading when the primary exchange does, deploy their smart contracts on a public, permissionless ledger and list no more than 75 Tier 1 stocks, a group made up mostly of S&P 500 names.
That public ledger rule matters for networks like the XRP Ledger, whose AMM went live on Mar. 22, 2024. The pools sit inside the ledger's decentralized exchange, and its documentation says trades can route through order books, AMM pools or both, whichever offers the better rate. Still, the order sets rules for venues and does not mention XRP (XRP), Ripple or the ledger itself.
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Curley Flags Limits
Peter Curley, head of global regulatory affairs at Ondo Finance, said the exemption favors custodial models that pass real shareholder rights through to token holders. He added that his firm is not assuming anything will clear automatically, and that investors will ultimately need outcomes that are faster, cheaper or more useful than today's market rails.
Jaewon Kim, head of research at Four Pillars, noted that the order leaves out tokens offering only synthetic exposure. That rules out Robinhood's Stock Tokens and Kraken's xStocks in their current form. SEC Chairman Paul Atkins has described the relief as an interim step that must be followed by durable rulemaking.
XRP Price Swings
XRP reportedly fell 6.91% over 24 hours on Sept. 24, sliding back toward $1.50 while the total crypto market lost 2.96% of its value.
The drop trimmed, but did not erase, a weekly gain of nearly 16% that took the token from $1.29 to as high as $1.66. Its daily RSI stood at 59 during that run, with the price about 16% above its 50-day simple moving average. Even so, XRP still trades roughly 59% below its all-time high of $3.65.
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