SEC Gives Green Light to Tokenized Stock Trading in US

The US Securities and Exchange Commission (SEC) has announced a five-year exemption for companies to trade tokenized stocks, a move that could integrate digital assets more deeply into traditional markets.

The exemption applies to platforms that facilitate trading of tokenized stocks, which are digital tokens representing a stock and can be traded on a blockchain similar to a cryptocurrency.

The SEC also offered liquidity providers in tokenized stocks a five-year exemption from dealer registration requirements.

Innovation Exemption is designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards, said SEC Chair Paul Atkins.