SEC Approves Blockchain-Based Equity Markets in the US

Robinhood CEO Vlad Tenev has welcomed the US Securities and Exchange Commission's (SEC) approval of a temporary Innovation Exemption for trading certain tokenized National Market System stocks on blockchain-based venues.

The exemption, which lasts five years, allows Tokenized Securities Venues to use permissioned automated market makers and liquidity pools to facilitate trading. This regulated path toward blockchain-based equity markets is seen as a significant step forward for the sector.

Tenev, in a tweet, expressed his enthusiasm for the development, stating that 'tokenization is coming to America.' He highlighted the benefits of tokenization, including instant settlement, 24/7 trading, and fractional ownership. However, it's essential to note that the framework requires tokenized stocks to preserve the rights of traditional shares.

Robinhood has already been building around this model outside the US, supporting stock tokens for users in over 120 countries. The company has also offered tokenized stocks in Europe with 24/5 access, providing a reference point as US rules evolve.