SEC Set to Unveil Framework for Tokenized Stocks Trading

The Securities and Exchange Commission (SEC) is reportedly planning to release a framework for trading blockchain versions of popular Wall Street-listed stocks. According to Bloomberg, citing people familiar with the matter, the agency will launch its 'innovation exemption' for tokenized stocks as early as this Friday. The proposal aims to give qualified firms a regulatory sandbox, allowing them to issue and trade tokenized securities on-chain under lighter-touch compliance conditions.

The SEC first hinted at the concept in April, with Chair Paul Atkins suggesting that it would provide a 'tailored offering regime for certain investment contracts involving crypto assets.' Several companies, including Robinhood Markets Inc. (HOOD) and Coinbase Global Inc. (COIN), have already experimented with tokenized stocks, but they remain unavailable for trading in the US.

The total market for tokenized stocks is worth over $2.50 billion, with a monthly transfer volume of $21 billion and a total number of holders of 1.16 million, according to rwa.xyz.