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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.