SEC to Unveil Tokenized Security Framework This Week

The US Securities and Exchange Commission (SEC) is preparing to release a framework that will allow traditional financial institutions to test tokenized securities without completing a full registration process.

This exemption, expected as early as this week, would enable firms to explore the benefits of blockchain-based securities, including faster settlement, lower intermediary costs, and round-the-clock trading availability.

The SEC has been gradually expanding its engagement with tokenized assets over recent months. In March, it approved a rule change permitting Nasdaq to support the trading of tokenized shares, while in April, it authorized a similar rule change for the New York Stock Exchange.

Analyst projections vary widely for the tokenized asset market, ranging from $2 trillion to more than $10 trillion by 2030. The SEC's forthcoming exemption framework is seen as a key step toward enabling broader institutional participation in tokenization.