The SEC approves WisdomTree's application for a tokenized money market fund exemption

The U.S. Securities and Exchange Commission (SEC) announced that its Division of Investment Management has issued an exemption to WisdomTree's tokenized money market fund, the WisdomTree Treasury Money Market Digital Fund. According to this exemption, investors can buy and sell shares of the money market fund (MMF) at a price of $1 per share during trading hours through dealers, without being subject to its daily closing net asset value (NAV), as the fund issues tokenized shares on the blockchain.

This regulatory exemption allows investors to continuously trade tokenized fund shares with dealers during trading hours, achieving faster settlement speeds compared to traditional models. The SEC added that this move provides flexibility for the operation of tokenized fund products within the current regulatory framework, helping to enhance trading efficiency and settlement experience.