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SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading
The exemption lets platforms trade tokenized U.S. stocks with full shareholder rights, while synthetic tokens and derivative products remain barred.
- On Thursday, the SEC issued an order creating a regulatory pathway for trading venues to issue tokenized representations of publicly traded United States stocks. The Innovation Exemption provides regulatory relief for platforms to facilitate tokenized stock trading, effective immediately.
- Following the failure of the Clarity Act in the Senate two days ago, the Commission is now moving to define regulatory boundaries for digital assets through its existing authority.
- Stock tokens must provide holders with the same rights as traditional securities, including voting, under the new Innovation Exemption. Trading platforms must notify companies 30 days before tokenizing shares, giving firms a window to object.
- Robinhood announced this week it is moving to address concerns by letting token holders redeem their tokens for underlying shares on a one-to-one basis and adding voting rights.
- SEC Chair Paul Atkins stated the five-year exemption aims to inform final rules and help Congress determine if new laws are needed. Part of the 'Project Crypto' initiative, this measure allows markets to evolve while the agency monitors development.
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35 Articles
SEC Issues Innovation Exemption For Tokenized Stock Trading
The U.S. Securities and Exchange Commission on Thursday unveiled its long-awaited innovation exemption, permitting certain crypto projects and liquidity providers to support tokenized stock trading for a five-year period without registering as exchanges or dealers.
·New York, United States
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SEC Paves Way for Tokenized Stocks with Innovation Exemption
The U.S. SEC introduces a five-year exemption for platforms trading tokenized stocks, enabling deeper integration of digital assets into traditional markets. This move aims to enhance market liquidity, reduce costs, and promote innovation while maintaining investor protections. Major crypto platforms plan to capitalize on this opportunity.
·India
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Total News Sources35
Leaning Left2Leaning Right2Center10Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
14%
C 72%
14%
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