SEC Clears Path for Tokenized Stocks in US Markets

The Securities and Exchange Commission (SEC) has taken a significant step towards allowing tokenized stocks to be traded on US markets. According to Taylor Lindman, chief counsel of the SEC Crypto Task Force, the first notices from prospective operators are expected next quarter. These filings will identify the venues and describe their plans for tokenizing U.S.-listed stocks.

The exemption allows eligible venues to provide permissioned trading through automated market makers and liquidity pools on public, permissionless blockchains. However, it requires operators to publish notices describing their activities within one business day of publication.

Issuers have 30 days to object to tokenized stocks created by an unaffiliated third party, which would prevent the venue from offering those shares. SEC Commissioner Hester Peirce expressed optimism that widespread objections will not hinder the development of this model, citing interest among companies and their desire for liquidity.