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Tokenized stock trading may pause for up to three months
The halt is tied to the SEC’s Sept. 17 framework for experimental Tokenized Securities Venues and is triggered by repeated breaches of a tokenized stock’s trading volume limit.
CryptoSlate reports that tokenized stock trading can be forced to stop for up to three months under an SEC framework for experimental Tokenized Securities Venues, which was issued for implementation around Sept. 17.
The outlet says the pause is triggered when a specific tokenized stock repeatedly breaches its trading volume limit, and it applies to that stock on the exchange and its affiliates rather than to all versions of the same tokenized stock across every platform.
CryptoSlate also explains that while buying stocks is already largely electronic through broker records, tokenization adds blockchain mechanics and separates, conceptually, ownership of a token, the rights attached to a share, and the place where that tokenized exposure can be sold.