SEC Introduces Innovative Exemption for Tokenized Stock Trading

The U.S. Securities and Exchange Commission (SEC) is planning to introduce a special "innovative exemption" for trading tokenized stocks based on blockchain. This innovation will allow trading of third-party tokens that track the price of company shares even without the companies' consent. According to Bloomberg, this decision will expand the scope of trading public company securities on decentralized crypto platforms outside of traditional exchanges. This is reported by Cointelegraph.com reports .

The SEC has consulted with hundreds of market participants while developing these rules. According to the proposed regulations, tokenized shares must possess all benefits inherent to ordinary shares, such as voting rights and dividends; otherwise, they may be delisted. This initiative is being led by Commissioner Hester Peirce.

Wall Street firms have shown great interest in the efficiency of blockchain technology in accelerating trading and settlement processes in recent years. For example, Intercontinental Exchange plans to launch a 24/7 tokenization platform for stocks and ETFs. Additionally, the crypto exchange Bullish has expanded its capabilities by acquiring the Equiniti platform for $4.2 billion.

Proponents of tokenization argue that this technology will open access to shares of companies like Nvidia, Google, and Tesla for investors who do not have traditional brokerage accounts. However, there are officials within the SEC who oppose this decision. Brett Redfearn, head of the Securitize platform, has expressed concern that tokenization without issuer participation could lead to market fragmentation.