SEC Puts Brakes on Tokenized Stocks in US

The US is finally opening its doors to tokenized stocks, which aim to bring blockchain technology into traditional markets. The SEC has introduced an Innovation Exemption that gives platforms a five-year window to experiment with trading US stocks using blockchain.

According to the new framework, platforms can initially offer up to 75 of the largest US stocks with trading capped at just 0.25% of each stock's average daily volume. Smaller stocks will have slightly more room but still be subject to restrictions.

Roninhood's crypto chief, Johann Kerbrat, believes that these limits could become a problem quickly, as the company's existing stock token business outside the US is already seeing enough activity to bump against some of the SEC's thresholds.