SEC Gives Five-Year Exemption for Tokenized Stock Trading

The U.S. Securities and Exchange Commission has announced a five-year exemption from securities laws for companies that facilitate tokenized stock trading on blockchain networks.

The exemption, which will remain in effect until 2028, is intended to accelerate the integration of digital assets into the financial economy.

To qualify for the exemption, platforms must ensure that holders of tokenized stocks receive the same rights as traditional stockholders and give companies the opportunity to object to having their securities represented digitally.

The SEC also granted a similar five-year exemption to liquidity providers, exempting them from regulatory obligations applicable to traditional dealers.