SEC Clears Path for 24/7 Tokenized Stock Trading

The U.S. Securities and Exchange Commission has introduced a temporary framework for secondary market trading of tokenized U.S. stocks.

This move marks one of the SEC's biggest steps towards enabling Wall Street stocks to trade on public blockchains, according to blockchain media outlet U.Today.

The key point is that it brings trading structures used in decentralized finance (DeFi) into an experiment in regulated securities markets.

The SEC allowed trading through tokenized stock vendors (TSVs) that meet certain conditions and the use of automated market maker (AMM) liquidity pools, which execute trades through smart contracts and asset pools rather than traditional order-book systems.