SEC Lets WisdomTree’s Tokenized Treasury Fund Trade at $1 All Day

The U.S. Securities and Exchange Commission 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 traditional end-of-day net asset value (NAV) pricing rules that govern most mutual funds.

The decision effectively bridges regulated money market structures with blockchain-based settlement infrastructure.

What the Exemptive Order Changes

Under standard mutual fund regulations, transactions must occur at the next-calculated NAV, typically determined at the end of the trading day. The SEC’s order provides relief from Section 22(d) of the Investment Company Act and Rule 22c-1, allowing a different execution model.

Key elements include:

• Intraday trading at $1.00: Registered broker-dealers with formal agreements can buy and sell shares on a principal basis at a fixed $1 price throughout the day.
• Independence from end-of-day NAV: Investors can transact at $1.00 regardless of the fund’s closing NAV calculation.
• Dealer-based liquidity model: Authorized broker-dealers act as intermediaries, enabling continuous liquidity rather than batch-based pricing.
• Blockchain-based settlement: Tokenized shares are expected to accelerate settlement cycles and improve operational efficiency.

This is the first time the SEC has granted such relief to a tokenized mutual fund, according to statements from WisdomTree.

Why This Matters Structurally

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.

In practical terms:

• Investors gain intraday liquidity at a stable price.
• Settlement can be faster through tokenization.
• The product remains backed by U.S. Treasuries within a regulated fund structure.

Unlike stablecoins, which operate under varying regulatory regimes, WTGXX remains subject to securities law oversight, custody standards, and disclosure requirements.

Regulatory and Market Implications

This order sets a precedent for tokenized financial products within 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 rather than existing alongside it.

If replicated, similar exemptions could reshape how short-duration Treasury products, cash management vehicles, and tokenized securities are distributed and settled in the U.S. market.

For investors, the development introduces a hybrid instrument: the operational efficiency of digital tokens combined with the legal protections of a registered Treasury money market fund.

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