The SEC plans an innovation exemption allowing crypto firms to offer blockchain-based stocks, potentially transforming equity trading.
The US Securities and Exchange Commission is preparing to introduce an innovation exemption that would permit crypto companies to trade tokenized versions of traditional stocks. This move, expected to be unveiled soon by SEC Chair Paul Atkins, aims to enable 24/7 trading and instant settlement, enhancing liquidity and reducing costs.
Tokenized stocks, which track conventional equities via blockchain, are already available on overseas platforms like Robinhood and Kraken. Major US crypto exchanges, including Coinbase, have indicated plans to launch similar products domestically pending regulatory approval. The exemption is anticipated to be temporary but could lead to long-term structural changes in equity markets.
The policy shift reflects a broader push to integrate digital assets into traditional financial systems, though it may exempt firms from certain SEC disclosure and investor-protection rules during the trial period.