SEC Clears Path for Tokenized Stocks in US
The US Securities and Exchange Commission (SEC) has approved a five-year framework for the 'Innovation Exemption,' paving the way for blockchain-based tokenized stocks in the country. This decision marks the first time such trading is legal in the United States.
Robinhood CEO Vlad Tenev hailed the regulator's move, stating that 'tokenization is coming to America.' He believes US investors will benefit from on-chain infrastructure features like 24/7 trading and instant settlement.
The SEC created a temporary 'sandbox' for testing tokenization technologies after Congress failed to pass the CLARITY Act. Under the new rules, qualified platforms can move traditional NMS stocks into an on-chain environment using automated market makers (AMMs) and liquidity pools.