SEC Framework Sparks Rally in Crypto-Related Stocks Amid Tokenization Plans

The U.S. Securities and Exchange Commission (SEC) has introduced a framework allowing certain platforms to trade tokenized versions of U.S.-listed stocks, sparking a rally in crypto-related stocks.

The temporary relief applies to approved tokenized securities venues and certain liquidity providers, which must provide investors with rights comparable to traditional shares, including voting and dividend benefits.

Strategy (MSTR) climbed about 7%, while MARA Holdings (MARA) gained roughly 6%. Coinbase Global (COIN), Galaxy Digital (GLXY) and Circle Internet Group (CRCL) also advanced around 6%, while Robinhood Markets (HOOD) added about 3%.

The SEC's five-year exemption is intended to create a regulatory framework for blockchain-based versions of publicly traded securities, but it has been met with caution by some in the industry. The exemptions are scheduled to remain in effect for five years while regulators gather public feedback on the initiative.