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SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading
The exemption lets qualifying platforms trade fully backed stock tokens with shareholder rights and imposes volume limits, issuer notice and five-year relief.
- 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.
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NYSE has spent a year testing Avalanche technology, Ava Labs says
The New York Stock Exchange has spent roughly a year testing Avalanche technology and working with Ava Labs as it develops infrastructure for tokenized securities, according to Ava Labs President Charley Cooper. Cooper said during an appearance at the Avalanche…
The SEC is loosening up its regulations and will allow tokenized shares on crypto platforms in the future. Thus, trading in shares is expected to move increasingly to such platforms.
·Düsseldorf, Germany
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Total News Sources121
Leaning Left4Leaning Right10Center18Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
13%
C 56%
R 31%
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