SEC Loosens Rules for Tokenized Equities, Sends Coinbase and Robinhood Shares Soaring

The SEC has introduced a five-year conditional Innovation Exemption allowing eligible platforms to trade tokenized U.S. equities without standard exchange registration.

This exemption is meant to enable digital asset brokerages and trading platforms to support tokenized equity trading while soliciting public comments to shape permanent regulatory policies for on-chain securities.

Tokenized equities represent traditional corporate shares as digital tokens on a blockchain, potentially facilitating 24/7 trading, fractional ownership, and more efficient settlement.

The decision opens doors for trading platforms like Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) to launch new asset offerings and capture additional trading volume.