SEC Gives Green Light for Tokenized Stocks in US Market

The US Securities and Exchange Commission (SEC) has opened the door to tokenized stocks, paving the way for their listing on venues in the country. The first notices for these venues are expected to arrive next quarter, according to Taylor Lindman, chief counsel of the SEC Crypto Task Force.

Lindman stated that issuers have 30 days to object to tokenized stocks trading on a venue, and operators must publish notices describing their activities before listing. The SEC's five-year exemption for these venues requires them to provide permissioned trading through automated market makers and liquidity pools on public blockchains.

SEC Commissioner Hester Peirce expressed interest in connections between tokenized markets and traditional trading venues, and highlighted the potential benefits of decentralized finance mechanisms supporting direct stock trading. However, she also noted that widespread adoption would raise regulatory questions.