SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading
The temporary exemption caps listings and trading volume while requiring tokenized shares to carry the same rights as traditional stock.
- 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.
78 Articles
78 Articles
US SEC Opens Door to Token Stocks, Introducing Blockchain Trading to $70 Trillion Stock Market The U.S. Securities and Exchange Commission (SEC) has opened a token stock market where listed stocks are converted into digital tokens on the blockchain for trading. This measure introduces a virtual currency-style trading method to the U.S. stock market, which is worth approximately $70 trillion.
SEC gives tokenized stock trading platforms five-year regulatory relief
The US SEC has granted a five-year exemption to platforms offering tokenized stocks, easing regulatory hurdles for blockchain-based share trading. The move could bring crypto platforms deeper into traditional equity markets, allowing potential 24/7 trading, instant settlement and fractional ownership, while maintaining issuer consent and investor protection requirements.
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