SEC Poised to Greenlight Trading of Tokenized Stocks on Crypto Platforms This Week

According to Bloomberg, citing people familiar with the matter, the U.S. Securities and Exchange Commission (SEC) is preparing to release an innovation exemption framework for tokenized stocks as early as this week. The framework would greenlight trading of tokenized public-company shares without the consent or backing of the issuer, enabling third-party tokenization on decentralized crypto platforms.

Third-party tokenized stocks would not carry standard equity benefits such as voting rights and dividends. Under the SEC's proposal, platforms unable to provide these benefits would lose the right to list such tokens. The agency is still refining the exemption details, which may be subject to change before release.