SEC Gives Nod to Blockchain Money Market Shenanigans

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Key Highlights

  • The SEC, in a groundbreaking move, approved WisdomTree’s tokenized money market fund to trade intraday at a fixed $1.00 price. Because nothing says “innovation” like charging people for doing absolutely nothing.
  • Blockchain-based tokenized shares now enable “continuous trading” and “faster settlement.” Because why let technology sit around when it can overcomplicate things?
  • This relief applies to the WisdomTree Treasury Money Market Digital Fund. And probably future funds, because why stop at one when you can keep inventing new ways to confuse investors?

The U.S. Securities and Exchange Commission (SEC), in a stunning display of regulatory agility, has granted exemptive relief to WisdomTree’s tokenized government money market fund. Now, shares can trade all day at a fixed $1.00 price, ignoring the fund’s actual value. Because who needs accuracy when you can have stability?

The order, issued on February 23, 2026, applies to the WisdomTree Treasury Money Market Digital Fund. Shares are now tokenized on a blockchain, which is just a fancy way of saying “we’re using a digital ledger to track ownership.” The SEC, after much deliberation, decided this is acceptable under the Investment Company Act of 1940. Because why not let a 1940 law govern 2026 finance?

According to the SEC’s Division of Investment Management, this exemption lets investors trade shares at a constant price during the day. That’s right-mutual funds, traditionally priced once daily, are now “intraday” because apparently, investors need to trade at 3:15 PM when their coffee runs out.

Tokenization Enables Continuous Trading and Faster Settlement

The fund issues shares as tokens on a blockchain, which is basically just a glorified spreadsheet that everyone agrees to ignore. Investors can now buy/sell shares anytime, because waiting for the end-of-day price was clearly too much for the average person.

The SEC’s X statement proudly declares this “faster settlement.” Because nothing says “progress” like making transactions take 15 minutes instead of 24 hours. Revolutionary.

The SEC also insists the fund remains a “regulated” product. Which means it’s still subject to rules, but now with added blockchain flair. Because why let innovation outpace compliance?

Exemption From Longstanding Pricing Rules

The Commission exempted the fund from Section 22(d) and Rule 22c-1, which normally prevent mutual funds from trading at prices other than their next calculated value. Because why let common sense stand in the way of a good idea?

WisdomTree Securities and its affiliated dealers can now buy/sell shares at $1.00. Because having a stable price is clearly the goal here. Or maybe it’s just easier than math.

The SEC claims this is “appropriate in the public interest.” Sure, because nothing serves the public interest like letting companies trade shares at a fixed price while pretending they’re doing something clever.

Approval of Affiliated Dealer Arrangements

The SEC also approved exemptions under Section 17(d) and Rule 17d-1, letting affiliated dealers do whatever they want. Because conflicts of interest are just “arrangements” now.

The SEC says this doesn’t disadvantage the fund. Which is comforting, I guess. Unless you’re not affiliated with WisdomTree.

Broader Application to Future Funds

While the order applies to one fund, it’s also valid for future funds under WisdomTree Digital Trust. As long as they meet requirements like being a government money market fund and using a $1.00 net asset value. Because why limit innovation to one product when you can spam it?

No Objections Filed During Review Period

The SEC gave interested parties a chance to object. No one did. Probably because everyone was too busy sipping lattes and nodding along.

The order took effect immediately. Because nothing says “careful oversight” like skipping a hearing and just going with it.

This approval is hailed as a regulatory acknowledgment of blockchain in the mutual fund system. Even though the fund doesn’t touch crypto. Because if we can’t regulate Bitcoin, at least we can tokenize the status quo.

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2026-02-24 07:49