BTCS Prepares DeFi Business To Provide Liquidity For Tokenized Stocks

TL;DR BTCS says its Imperium DeFi unit has completed preparatory compliance steps for potential use of the SEC’s Covered Firm exemption. The company has submitted the required notice and published relevant disclosures. Imperium has not yet started providing tokenized-equity liquidity because a qualifying Tokenized Securities Venue must first become operational. BTCS is positioning its DeFi business to become a liquidity provider for tokenized stocks under a new SEC exemption, but it has not started doing the trading yet. The Nasdaq-listed company said on September 28 that its Imperium unit has completed the preparatory compliance work required for potential reliance on the SEC’s Covered Firm exemption. That includes submitting a notice to the regulator and publishing required disclosures. The Exemption Does Not Mean SEC Approval This is an area where the procedural details matter. BTCS has not received a broker-dealer license for Imperium. The SEC has not endorsed the company’s tokenized-equity strategy. Instead, the regulator created conditional temporary relief from the dealer definition for qualifying firms providing liquidity through automated market maker pools on eligible tok...