SEC Paves Way for 24/7 U.S. Trading with Tokenized Stock Plan

The Securities and Exchange Commission (SEC) is developing an exemption for platforms offering tokenized securities. This framework could allow firms to trade digital versions of U.S. stocks under federal requirements, enabling continuous trading and faster blockchain settlement for eligible securities.

The proposed structure could connect digital share records with established market systems and securities rules. However, the SEC still needs to address custody, surveillance, clearing, settlement, and investor protection.

SEC Chair Paul Atkins supports efforts to move financial markets onto blockchain networks. The technology could shorten settlement times by recording ownership changes directly on blockchain networks. Yet tokenization does not remove market duties, as securities still require safeguards and clear ownership rights.