The U.S. Securities and Exchange Commission (SEC) has granted a special exemption to asset manager WisdomTree, allowing intraday trading for its tokenized money market fund shares. This regulatory move is expected to significantly speed up settlement times and improve access for retail investors.
Previously, investors in WisdomTree's Treasury Money Market Digital Fund were restricted to end-of-day transactions. The SEC's one-off exemption removes this limitation, marking a notable advancement in the tokenization of capital markets and the use of blockchain technology for financial transactions.
Will Peck, WisdomTree's head of digital assets, expressed excitement, calling it a first for any tokenized mutual fund. Brian Daly, the SEC's head of Investment Management, stated that the relief maintains the protections of a regulated money market fund while offering retail investors intra-day liquidity.
This development aligns with growing interest in tokenized securities as crypto firms leverage a more favorable regulatory climate in Washington for digital assets.