SEC readies plan for trading crypto versions of stocks, Bloomberg News reports
- On Monday, the Trump administration and the Securities and Exchange Commission were reported to be preparing an "innovation exemption" for tokenized stocks, allowing trading platforms to offer digital versions of publicly traded securities under lighter regulatory oversight.
- Financial institutions are racing to modernize the $126 trillion global equity market using blockchain technology, with Wall Street firms moving quickly to position themselves for this regulatory shift.
- According to the Bloomberg report, the SEC is leaning toward allowing trading in tokens that lack backing or consent from underlying public companies, potentially trading without traditional shareholder rights like voting power or dividends.
- The Depository Trust & Clearing Corporation plans to begin limited production trades of tokenized assets in July, joining Nasdaq and Intercontinental Exchange in developing blockchain-based frameworks for securities.
- SEC Chair Paul Atkins is considering formal rulemaking to clarify regulations for onchain trading systems; while supporters argue this could reduce settlement delays, critics warn of potential liquidity fragmentation and weakened investor protections.
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43 Articles
View: Shadow stock markets could crowd out the real thing
Welcome to the wrapper economy, where “ownership” is replaced by “exposure.” The Trump administration is expected to start allowing digital versions of stocks that track prices but don’t carry the typical voting rights or dividends — and could be issued without the approval of the companies themselves. The new rules, which Bloomberg reports could be released this week, would create a new way to bet on corporate fortunes.We already have a way to …
SEC To Allow Crypto-Based Tokenized Stock Trading
The U.S. Securities and Exchange Commission is on the verge of releasing a landmark “innovation exemption” that would allow publicly traded company stocks to be represented as crypto tokens and traded on blockchain-based platforms — a move that could fundamentally reshape how equities are bought and sold around the world. What is a tokenized stock? A tokenized security is a financial instrument — such as a stock — that is formatted as or represe…
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