finance
SEC Readies Framework for Trading Tokenized Stocks
The Securities and Exchange Commission is preparing a plan that would permit trading of tokenized versions of stocks and other securities. The so-called innovation exemption is expected to be released as soon as this week.
May 18, 5:35 PM·1m read2 sources
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The Securities and Exchange Commission is preparing a framework that would allow trading of tokenized versions of stocks and other securities.
The plan is described as an innovation exemption for tokenized stocks. Officials expect to release the exemption as soon as this week. The framework would create a regulatory path for trading digital versions of traditional securities. Bloomberg reported the development first.
Tokenized stocks represent ownership in companies through blockchain records rather than conventional share certificates. The approach aims to increase trading speed and reduce settlement times. The SEC has not yet issued the formal announcement. Market participants are watching for details on how the exemption would operate alongside existing securities rules.
“The SEC is preparing a framework that could allow trading of tokenized versions of stocks and other securities.”
