SEC Unveils Plan for Blockchain-Based Stock Trading

The Securities and Exchange Commission (SEC) is preparing to release an innovation exemption that will allow platforms to trade tokenized versions of US public stocks on blockchain rails. This move, expected shortly after June 17, 2026, would let crypto-native platforms offer digital representations of existing equities without going through the full broker-dealer registration process.

The guidelines, championed by SEC Chair Paul Atkins, would allow approved platforms to list tokenized shares that mirror traditional stocks but trade on-chain. These digital versions must carry the same rights and protections as their conventional counterparts, according to Commissioner Hester Peirce.

Traditional stock trades take one business day to settle under the current T+1 framework, while blockchain-based settlement could compress this timeline dramatically, reducing counterparty risk and freeing up capital that would otherwise sit locked during the settlement window.

Coinbase has already signaled its intent to launch tokenized stock products in the US as soon as the regulatory framework solidifies. The exemption model itself is borrowed from a well-established regulatory playbook used by financial regulators in Singapore, the UK, and the EU.