United States: Securities

On September 17, 2026, the Securities and Exchange Commission (the “SEC”) issued an order designed to facilitate onchain trading of tokenized National Market System (“NMS”) stocks through a new category of trading venue, a Tokenized Securities Venue (“TSV”).[1] The so-called “Innovation Exemption” permits TSVs that meet certain specified conditions to trade tokenized NMS stock using permissioned automated market makers and liquidity pools[2] (together, “AMM Liquidity Pools”) and grants a five-year, conditional exemption to TSVs from the definition of “exchange” under the Securities Exchange Act of 1934 (the “Exchange Act”). The Innovation Exemption also grants a five-year, conditional exemption from the definition of “dealer” under the Exchange Act to liquidity providers in an AMM Liquidity Pool used by a TSV.

This alert is a part of a series discussing efforts the federal government is taking to modernize the Bank Secrecy Act. Foley Hoag LLP will continue to track and discuss further developments.

August 2026 witnessed significant regulatory developments in the digital asset space, with the SEC proposing Regulation Crypto Assets to establish exemptions for crypto investment contracts while Congress debated the CLARITY Act. International regulators in the UK and Singapore also advanced frameworks for stablecoins and payment systems, reflecting a global push toward comprehensive digital asset oversight.

The Securities and Exchange Commission has proposed rescinding Rule 14a-8, the decades-old regulation that requires companies to include shareholder proposals in proxy statements. This fundamental shift in shareholder engagement, coupled with proposed amendments to Rule 14a-4 regarding discretionary voting authority, could reshape how shareholders communicate with companies and influence corporate governance. The proposed changes raise critical questions about alternative channels for shareholder voice and

When Does a SEC Investigation Turn into a Federal Criminal Inquiry?

Yes, the Securities and Exchange Commission often relies on electronic communications, like emails, text messages and social media chats to prove insider trading. In fact, such communications can prove to be critical evidence in establishing some or all of the key elements of an insider trading prosecution: knowledge, intent, relationships and, in some cases, efforts to conceal or cover-up after-the-fact.

The SEC has approved FINRA's consolidated Rule 3290, which will replace existing outside-activities rules for broker-dealer employees. While approval marks a regulatory milestone, firms must distinguish it from effectiveness and use the transition period strategically to rebuild disclosure forms, risk assessment frameworks, supervisory conditions, and compliance records before the rule takes effect.

Courts in Delaware and New York recently have dismissed with prejudice parallel putative class actions challenging mutual fund NAV accounting practices. The decisions are important victories for advisers to registered funds. Both cases asserted claims under the Securities Act of 1933, alleging that equity mutual funds misstated NAV by treating accrued dividends and realized capital gains as assets rather than liabilities.

In this video, David R. Chase, a former SEC Enforcement Attorney and for over the last 30 years as SEC defense attorney, explains the SEC investigation process.