The U.S. Securities and Exchange Commission (SEC) announced an exemption granting pricing flexibility to WisdomTree’s digital treasury money market fund. This step paved the way for the fund to go beyond classical methods and be traded with a fixed price structure.
Exemption Decision for Digital Funding for WisdomTree
The SEC decision dated February 23, 2026 is based on relevant provisions of the Investment Company Act of 1940. According to the decision, WisdomTree Digital Trust’s Treasury Money Market Digital Fund and affiliated brokerage firms will be able to trade the fund’s shares during the day at a fixed price of $1 per share. In this structure, the value of the fund will not be limited to the end-of-day net asset value (NAV); Liquidity will be offered to investors during the day.
Details of Fixed Price Transaction Structure
This exemption allows brokerage firms and affiliates to trade fund shares at a fixed price of $1. Thus, valuation methods used in traditional money market funds and targeting fixed net asset value are also applied to this digital fund. In the SEC’s justification, it was stated that investor protection and policy objectives under the law were observed.
The exemption also applies to affiliated companies that carry out operations such as distribution and transfer agency of the fund. In this way, the way has been paved for digital asset-based funds to operate in an integrated manner with traditional financial regulations.
A New Era for Digital Funds
Money market funds based on digital infrastructure will be able to act both in compliance with traditional valuation principles and with new generation transfer technologies. It was stated that the fund in question was structured to maintain a stable net asset value with blockchain-based transaction capability. The SEC evaluated that the advantages provided to other parties will not be left behind in joint transactions between the fund and affiliated brokerage firms.
Following the decision, industry representatives also made evaluations about the digitalization envisaged in the fund structure. Paul Atkins, known for his influential history on capital market regulations in the USA, emphasized that regulators pay attention to new technology proposals coming from the market.
It was stated that regulators are sensitive to the attempts of market participants to modernize capital markets with digital technologies. It was stated that this decision can be seen as a step in promoting innovation, especially in the field of tokenization.
From a different perspective, he stated that the introduced model is not only focused on “tokenization”. While transactions in classical money market funds are priced only at the end of the day, in the new structure investors will be able to buy and sell for $1 during the day. It was highlighted that this makes on-chain digital funds closer to cash and can facilitate applications such as fast payments, collateral management and repo.
On the other hand, Bitwise Asset Management and GraniteShares companies also applied to the SEC to launch new investment products based on the US election results. These applications aim to expand the innovation potential of financial markets.
