The SEC is opening the door for crypto-style trading of U.S. stocks, allowing tokenized shares to trade on blockchain-based venues under a new regulatory exemption.

Why it matters: The move brings a core piece of crypto-market infrastructure into the $75 trillion U.S. stock market, creating a new way for investors to buy and sell shares.

Driving the news: The SEC this morning issued a pair of five-year, conditional exemptions from current securities laws defining exchanges and dealers, giving certain blockchain-based trading platforms a path to offer trading in tokenized U.S. stocks.

Two key details related to the order:

• 👎 Individual companies can opt out if they choose.
• 🗳️ The tokenized stocks will carry the same rights and privileges as the shares they represent, including dividends and voting rights.

Between the lines: That means they can't be synthetic derivatives, which are already offered by multiple platforms outside the U.S. — and have ruffled a few feathers.

📈 Winners: Securitize, which provides the infrastructure to tokenize securities, closed up 15%.

• Coinbase and Robinhood — both of which already offer different models of tokenized stock trading to non-U.S. users — rose over 5%.

🏛️ The big picture: The SEC's "innovation exemption" comes just days after long-sought crypto market-structure legislation failed to advance in a key Senate procedural vote.

• While negotiations over the Clarity Act have dragged on, the SEC has been working for over a year using its statutory authority to write new rules for the crypto sector to operate within the U.S.

🙋What's next: While the order is in effect immediately, it also calls for public comment about possible modifications and potential next steps.

• The exemptive relief and the experience gained from people engaging in the market are meant to help inform final rulemaking, an SEC official said.

Go deeper

Data center opposition and talk of a coordinated AI slowdown aren't giving Nvidia CEO Jensen Huang reason for pessimism about the company's chip sales.

📈 State of play: Huang told reporters today in Scotland that he expects the company to double chip sales in 2027.

Zoom in: The statement comes after Nvidia projected last month that its revenue would rise by 70% in the next fiscal year, delighting investors who weren't accustomed to the company issuing such an extended outlook.

• CFO Colette Kress noted on the August earnings call that the projected 70% increase assumes "a supply-constrained" environment — suggesting that it was possible to exceed that estimate if chip production capacity exceeds expectations.

🥊 Friction point: Huang has dismissed the need for additional AI regulations or a coordinated slowdown, putting him in conflict with Anthropic and OpenAI — two customers the company has also invested in.

• "Huang said that companies need to take responsibility and make sure their AI software and services are safe before releasing them," Bloomberg reported from Scotland.

💸 Amway and ⁠two of its affiliates will pay $225 million to ‌settle allegations it recruited ‌new members with deceptive claims about ⁠potential earnings, in what the FTC called its largest action against a multilevel marketing company. (Reuters)

🍔 McDonald's is planning a revamp of its value strategy and changes to training and support for franchisees as it seeks a boost from last quarter's 0.8% growth in U.S. same-store sales. (Bloomberg)

💰 CoreWeave is launching a $3 billion convertible debt offering. (Reuters)

The Buffalo Bills' new $2.2 billion stadium makes its regular-season debut tonight for the team's game against the Detroit Lions.

🏉 Highmark Stadium features include:

• ❄️ An open roof to maintain the outdoor feel — but with hydronic snow-melting technology and a partial canopy to protect fans from the elements.
• 🏟️ A stacked seating system to ensure that fans are closer to the field.
• 🏈 360-degree concourses with excellent views of the field.
• 📱 5G wireless connectivity.
• 🏃‍♂️ An indoor turf warm-up field and recovery center.
• 🎸 Expandable seating capacity for non-football events.

💭 Nathan's thought bubble: This Packers fan commends the Bills for bucking the trend of wimpy cold-weather teams (like the Lions) trying to make football an indoor sport.