SEC Rules Give Tokenized Equities Trading a Regulatory Boost
Financial services firm Bernstein says crypto stocks will benefit from new SEC rules that validate tokenized equities trading on public blockchains. Analyst Gautam Chhugani said the innovation exemption brings tokenized equities within the existing securities and exchange regulatory framework.
The SEC's move validates leading public blockchains such as Ethereum and Solana, as well as decentralized financial infrastructure like Uniswap, according to Bernstein. The firm identified several beneficiaries of the new rules, including broker-exchanges Coinbase and Robinhood, tokenization ecosystem Figure Technologies, and stablecoin leader Circle.
Bitdeer, a crypto mining company with a market cap of $5.81 billion, is expected to turn profitable this year with forecasted earnings of $0.47 per share, according to InvestingPro data. The stock has shown strong momentum recently, with notable gains over the past week and month.
Bernstein highlighted three leading operating models for securities tokenization: issuer-led model, depository-led model, and third-party led model. The firm noted that offshore tokenized equity structures may not fit the SEC definition of tokenized securities without adequate shareholder rights or issuer consent.