SEC Prepares Framework for Tokenized Stocks on Crypto Platforms - Blockonomi

by · Blockonomi

TLDR

Table of Contents

Toggle

  • The SEC is preparing a framework to allow tokenized stocks to trade on crypto platforms under lighter regulatory requirements.
  • The proposal would let third parties issue tokens that track stock prices without approval from the underlying companies.
  • Token holders would not receive shareholder rights such as voting power or dividend payments.
  • Tokenized stocks would trade continuously on blockchain networks without traditional market-hour restrictions.
  • Market data shows the tokenized equities sector has reached about $1.4 billion in total value.

U.S. regulators are preparing a new framework that could allow blockchain-based stock trading on crypto platforms. The plan focuses on tokenized securities and aims to ease compliance requirements for certain providers. Bloomberg reported that the U.S. Securities and Exchange Commission may release the proposal within days.

SEC Outlines Structure for Tokenized Stocks Framework

The SEC is developing an “innovation exemption” to support tokenized securities trading under lighter rules. The proposal would allow platforms to offer digital stock representations without full registration compliance. Sources familiar with the matter said the agency could introduce the framework as early as next week.

The structure allows third parties to issue tokens that track publicly traded shares without company approval. These tokens would reflect stock prices but would not represent direct ownership in the underlying firms. As a result, holders would not receive voting rights, dividends, or participation in corporate decisions.

The tokens would operate on blockchain networks and trade continuously across global crypto platforms. This system would remove traditional trading hour limits and reduce settlement delays. However, the SEC has not issued an official comment on the reported framework.

Market Activity Grows as Institutions Advance Tokenized Stocks

Market data shows that tokenized equities continue to expand in scale and activity across platforms. Data from RWA.xyz indicates the sector holds about $1.4 billion across more than 2,200 assets. The total value increased by about 30% over the past 30 days, while monthly transfer volume reached $3.24 billion.

The number of token holders also rose by 25% within a month to about 265,000 users. These figures reflect rising participation in blockchain-based financial products. Meanwhile, trading platforms continue to develop infrastructure to support this growth.

The Depository Trust & Clearing Corporation plans to begin limited tokenized asset trades in July. It also aims to expand the program into broader production use by October. The DTCC processes most U.S. securities transactions, and its entry supports operational development in this space.

Exchanges and Regulators Align on Digital Trading Systems

Nasdaq secured SEC approval in March for a rule change supporting tokenized share trading. The framework ensures that investors retain traditional ownership rights through regulated structures. The New York Stock Exchange also received approval in April to build a platform for continuous onchain settlement.

Intercontinental Exchange, which owns the NYSE, partnered with crypto exchange OKX to support this effort. The collaboration focuses on integrating blockchain systems with established trading infrastructure. These developments show coordinated steps between exchanges and regulators.

SEC Chair Paul Atkins has emphasized the need for updated regulatory approaches to digital markets. He stated that existing rules were designed for systems with fixed hours and human intermediaries. He said regulators should “write rules instead of enforcing outdated frameworks” to guide emerging technologies. The Senate Banking Committee recently advanced legislation related to crypto market structure. Lawmakers continue to work on clearer guidelines for digital asset regulation.

✨ Limited Time Offer

Get 3 Free Stock Ebooks

Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.

  • Top 10 AI Stocks - Leading AI companies
  • Top 10 Crypto Stocks - Blockchain leaders
  • Top 10 Tech Stocks - Tech giants

📥 Get Your Free Ebooks

Advertise Here