The U.S. Securities and Exchange Commission (SEC) has announced an exemption order that gives investment company WisdomTree the ability to offer a digital treasury money market fund with flexible pricing. This regulatory move opens the door for the fund to operate outside conventional models by enabling it to trade at a fixed price structure, a significant shift for digital asset-based investment vehicles.
Exemption Opens Path for WisdomTree’s Digital Fund
Dated February 23, 2026, the SEC’s decision is anchored in specific provisions of the Investment Company Act of 1940. According to the ruling, the WisdomTree Digital Trust—which includes the Treasury Money Market Digital Fund and its associated brokerage firms—will be permitted to process intraday trades at a constant price of one dollar per share. This innovation means that the fund’s value won’t be constrained by its end-of-day net asset value (NAV); instead, investors will have access to liquidity throughout the trading day.
How the Fixed-Priced Structure Works
The exemption will allow brokers and affiliated firms to conduct transactions in fund shares at a stable price point of one dollar. Effectively, this means digital money market funds will employ the same valuation methods aimed at maintaining a constant NAV as seen in traditional money market funds. The SEC noted in its reasoning that investor protection and the policy goals set by the law were closely taken into consideration in granting this flexibility.
Moreover, the exemption extends to affiliated companies responsible for handling the fund’s distribution and transfer agency operations. By doing so, the SEC is signaling a broader willingness to integrate digital asset-based funds into the fold of conventional financial regulation, reflecting a new era of convergence between traditional and digital finance.
New Era for Digital Money Market Funds
Digital infrastructure-based money market funds now have the opportunity to align longstanding valuation practices with next-generation transfer technologies. It is emphasized that the WisdomTree fund is built to maintain a stable NAV while conducting transactions using blockchain technology. The SEC indicated that collaborative transactions between the fund and its associated intermediaries would not deprive any party of the advantages enjoyed in conventional markets.
Following the decision, industry representatives weighed in on the implications of this digital restructuring for fund management. Paul Atkins, known for his longstanding influence on U.S. capital market regulation, pointed out that regulatory bodies are increasingly attentive to technology-driven proposals emerging from the industry.
Regulators are taking a cautious approach toward market participants’ initiatives to modernize the capital markets through digital technologies, and this decision could be viewed as a milestone for encouraging innovation in the field of tokenization, Paul Atkins observed.
From another perspective, experts underlined that this new model is not just about “tokenization.” Unlike traditional money market funds, which are priced only at the end of the day, the new framework allows for intraday buy and sell transactions at a fixed price of one dollar. This brings digital on-chain funds closer to cash by facilitating rapid payments, enhancing collateral management, and simplifying applications such as repo transactions.
Meanwhile, other firms such as Bitwise Asset Management and GraniteShares have also filed applications with the SEC to launch new investment products linked to U.S. election outcomes. These new filings demonstrate the financial market’s drive toward increased innovation and product diversity.
