SEC Set to Unveil Rules for Tokenized Stocks Amid Onchain Market Growth
The US Securities and Exchange Commission (SEC) is planning to introduce rules for tokenized stocks, according to Bloomberg. The SEC will propose a framework called 'Regulation Crypto' that would allow projects to raise capital through token sales without full securities registration.
The more significant development, however, is the proposed 'innovation exemption' for tokenized stocks. This exemption would enable tokenized versions of stocks like Apple, Tesla, and Nvidia to trade on blockchains around the clock, in fractional sizes, with near-instant settlement.
This move has been eagerly anticipated by the onchain market, which has seen significant growth this year. Tokenized stocks have been driving growth on platforms such as Robinhood Chain, Solana, and Base. The SEC's exemption would provide much-needed clarity for these projects, potentially opening US retail access to tokenized assets.