SEC Gives Tokenized Stock Trading Platforms Five-Year Regulatory Relief

The US Securities and Exchange Commission has given tokenized stock trading platforms a five-year regulatory relief. This move could bring digital assets closer to mainstream equity markets.

The exemption allows platforms offering tokenized stocks, which are digital tokens representing shares that can trade on a blockchain, to avoid several rules that apply to traditional stock exchanges such as Nasdaq and the New York Stock Exchange.

Liquidity providers in tokenized stocks will also receive a five-year exemption from dealer registration requirements. This comes as crypto companies push to expand into stock trading, potentially bringing their platforms into greater competition with traditional brokerages.