SEC Unlocks $77 Trillion US Stock Market with Crypto-Style Trading

The US Securities and Exchange Commission (SEC) has opened up the $77 trillion US stock market to crypto-style trading through tokenization. This move comes after Congress failed to advance the CLARITY Act, a broad crypto market-structure bill that sought to establish statutory rules for digital assets.

SEC Chair Paul Atkins explicitly tied the September 17 action to the stalled legislation, saying the agency was moving 'within its statutory authority' to facilitate on-chain trading of certain tokenized stocks. This decision creates a framework for Tokenized Securities Venues (TSVs) that bring buyers and sellers together through permissioned automated market makers and liquidity pools.

The exemption applies to tokenized National Market System stocks that represent genuine securities, giving holders the same rights and privileges as equivalent traditional shares. However, issuers retain considerable control over what reaches the new venues, allowing them to prevent their stock from trading through a TSV if they object. Trading is also subject to limits on the number of stocks and volumes that can change hands.

The SEC's move coincided with an SEC roundtable on preparations for 24-hour US equity trading, reflecting a broader shift toward markets that operate beyond traditional session hours. Commissioner Mark Uyeda described the structure as deliberately constrained, with symbol and volume caps, as well as requirements covering transaction transparency, trading halts, recordkeeping, and technology safeguards.