Home›Crypto›Regulation›SEC opens innovation path for tokenized stocks, shifti…

SEC opens innovation path for tokenized stocks, shifting winners and losers

The SEC order creates a five-year route for certain venues to trade tokenized NMS stocks onchain without registering as exchanges, but only if the tokens preserve shareholder voting and dividend rights.

Reported · Written up by our desk · Regulation

The SEC has laid out a five-year path aimed at enabling tokenized stock trading, and the development has sparked sharp gains across parts of the crypto market, according to Cointelegraph. Cointelegraph reports that BTC and ETH jumped more than 10% after the SEC announced its Innovation Exemption, while Uniswap’s UNI token gained more than 30% in the days that followed. The article frames the rally as evidence that markets are starting to price in the regulatory shift toward onchain stock trading.

Under the SEC’s Innovation Exemption, certain venues can trade tokenized National Market System stocks onchain without registering as a securities exchange, and third parties can tokenize stocks, but only if specific conditions are met. The rules require tokens to provide holders the same “rights and privileges” as the underlying shares, and venues must permission users and pools. Cointelegraph also notes that not all tokenized stocks qualify, particularly “synthetic stock” designs that may track a share price or resemble a share without delivering shareholder rights such as voting and dividends. The piece highlights that this distinction could put some firms further ahead while forcing others to adjust their offerings to fit the SEC’s framework.

Latest closeBitcoin $84,236.73 ▼2.2%|Ethereum $2,682.38 ▼2.5%

More like this

Sources