SEC Clears Path for 24-Hour Trading with Five-Year Tokenized Stock Exemption

The U.S. Securities and Exchange Commission (SEC) has announced an innovation exemption plan that allows tokenized stocks for the next five years.

This move came two days after the Senate voted down the Clarity Act, legislation aimed at creating a broad supervisory framework for the cryptocurrency market.

The SEC's innovation exemption took effect immediately and applies to not only shares listed on U.S. exchanges but also stocks tokenized by third parties.

However, in cases where third parties tokenize shares, there will be limitations, including a 30-day period during which the underlying company can exercise its veto if it chooses to do so.