SEC Exemption Paves Way for Tokenized Equity Trading in the U.S.
The U.S. Securities and Exchange Commission (SEC) has announced a conditional exemption for tokenized U.S. stocks, allowing approved platforms to trade blockchain-based versions of publicly listed equities.
The exemption, which lasts five years, relaxes certain regulatory requirements, including dealer registration, for qualifying platforms and liquidity providers.
Coinbase and Robinhood are seen as immediate beneficiaries of the exemption, having already explored or launched tokenized equity products outside the U.S.
Tokenized equities could allow platforms to offer 24/7 trading, fractional ownership, and direct settlement on blockchain infrastructure, reducing reliance on traditional intermediaries and potentially increasing trading volumes.