The U.S. Securities and Exchange Commission (SEC) has issued a landmark exemptive order for the WisdomTree Treasury Money Market Digital Fund (WTGXX), marking a structural shift in how tokenized mutual funds can operate under U.S. securities law. The ruling allows the fund to offer intraday liquidity at a fixed $1.00 price, diverging from the traditional end-of-day net asset value (NAV) pricing rules that govern most mutual funds.
This decision effectively bridges regulated money market structures with blockchain-based settlement infrastructure. The SEC's order provides relief from Section 22(d) of the Investment Company Act and Rule 22c-1, permitting a new execution model. Key elements include intraday trading at $1.00 by registered broker-dealers, independence from the fund's closing NAV, a dealer-based liquidity model for continuous trading, and the use of blockchain for faster settlement cycles.
According to WisdomTree, this is the first time the SEC has granted such relief to a tokenized mutual fund. The exemption allows a regulated Treasury-backed money market fund to function operationally closer to a stablecoin, while retaining the legal framework and investor protections of a registered security. Investors gain intraday liquidity at a stable price, with faster settlement through tokenization, all while the product remains backed by U.S. Treasuries within a regulated fund structure.
The order sets a precedent for integrating tokenized financial products into traditional regulatory frameworks. It signals that blockchain-based share issuance can coexist with established mutual fund rules, provided structural safeguards are maintained. The broader implication is that regulated digital assets are increasingly being integrated into mainstream financial architecture. If replicated, similar exemptions could reshape the distribution and settlement of short-duration Treasury products and tokenized securities in the U.S. market.
