SEC Paves Way for Blockchain-Traded US Stocks with Five-Year Exemption

The US Securities and Exchange Commission (SEC) has made a significant decision that paves the way for tokenized US stocks to be traded on blockchains.

The SEC granted a temporary exemption to platforms called Tokenized Securities Platforms (TSVs), allowing the trading of tokenized US stocks under certain conditions. This exemption is temporary and will expire five years after its publication, giving TSVs a window of opportunity to develop and refine their services.

One of the key elements of the regulation is maintaining the link between the tokenized asset and the physical stock. Tokenized shares traded on TSV must be subject to limitations in terms of both trading volume and the number of shares that can be listed. The legal and economic link between the token and the underlying real share must be preserved.