SEC Gives Temporary Nod to Blockchain Stock Trading

The Securities and Exchange Commission (SEC) has granted a temporary exemption to platforms like Robinhood and Coinbase, allowing them to trade certain tokenized U.S. stock shares on blockchain rails.

This move comes after the Senate failed to advance the CLARITY Act, which would have provided broader legislation for tokenized securities. Instead, the SEC chose to grant conditional relief, giving permissioned automated market makers and liquidity pools access to trading tokenized National Market System stocks.

The exemption is deliberately narrow, requiring tokenized shares to provide investors with the same basic rights as traditional stocks, including dividend and voting rights. Issuers must also be given an opportunity to object before their shares are traded in a tokenized format.

SEC Chairman Paul Atkins described this move as 'a step toward bringing U.S. capital markets on-chain while the agency evaluates longer-term rules.'