SEC Clears the Way for Tokenized Stock Trading on Blockchain
The SEC has opened up new opportunities for blockchain technology by allowing tokenized stocks to be traded onchain. This move, which clears the way for five years of unregistered trading, has sent Bitcoin prices above $81,000.
The innovation exemption allows specialized platforms to trade tokenized U.S. stocks without registering as traditional exchanges. The trading is done through permissioned automated market makers and liquidity pools within a gated environment that requires KYC checks and prohibits margin trading and primary issuance.
SEC Chairman Paul Atkins hailed the move as a significant step towards bringing U.S. capital markets into the digital age. However, experts caution that the actual market for tokenized stocks still needs to be built.