The U.S. Securities and Exchange Commission may be preparing one of the biggest regulatory shifts yet for digital finance. Bloomberg Law reported that the agency is considering a new “innovation exemption” that could allow platforms to trade tokenized stocks under lighter rules.
The proposal could arrive as early as this week. If approved, it would open the door for digital versions of publicly traded securities to trade more freely on blockchain-based systems.
The move signals a growing change in Washington’s attitude toward crypto infrastructure. For years, regulators focused mainly on enforcement. Now, the SEC appears ready to create rules designed specifically for blockchain-powered markets.
Also Read: BNB ETF Nears Launch After Strong Filing of Amended S-1 prospectuses with SEC
Tokenized Stocks Could Change Market Structure
Tokenized stocks are blockchain-based versions of traditional shares. Unlike normal equities, they can trade 24 hours a day and settle almost instantly.
Supporters believe this system can remove friction from financial markets. Faster settlement could lower costs and reduce delays that have existed for decades in traditional finance. Blockchain rails may also give global investors easier access to U.S. equities.
Critics, however, warn that tokenized stocks could fragment liquidity across multiple platforms. Investor protection and market oversight also remain key concerns.
However, major institutions are moving ahead aggressively. The Depository Trust & Clearing Corporation plans to begin limited tokenized asset trades in July before a broader rollout in October. The system would support tokenized versions of stocks and ETFs backed by assets already held inside the DTCC infrastructure.
Meanwhile, Nasdaq is building a framework for blockchain-based shares while maintaining traditional ownership rights. Intercontinental Exchange, the parent company of the New York Stock Exchange, is also expanding into tokenized securities through a partnership tied to crypto exchange OKX.
Tokenized Stocks Gain SEC Support
SEC Chair Paul Atkins has openly acknowledged that existing securities laws do not fully fit blockchain systems. He recently said the agency is reviewing rules for on-chain trading, blockchain settlement, and crypto custody.
Atkins argued that modern financial systems increasingly combine trading, clearing, and settlement into one protocol. Because of that, the SEC may prefer formal rulemaking instead of relying on enforcement actions.
The push comes as firms compete to modernize the $126 trillion global equity market. If the SEC moves forward with its innovation exemption, tokenized stocks could move from a niche crypto concept into mainstream Wall Street infrastructure.
Also Read: Grayscale and VanEck Update BNB ETF Filings as SEC Review Intensifies
