Securities and Exchange Commission Chair Paul Atkins stated the agency is moving forward with an innovation exemption for tokenized listed securities. This framework aims to allow compliant trading of these assets on blockchain networks while broader rules are still in development.
Bloomberg reported this measure could enable 24/7 trading of stock tokens on blockchains. However, the specific legal structure and effective date remain unclear, and the exemption does not appear on the SEC’s current meeting agenda. Industry groups have already called for strict limits on any such proposal.
Key facts
- Chair Paul Atkins described the plan as a limited approach to facilitate onchain trading for listed securities.
- Bloomberg noted the exemption could pave the way for continuous, round-the-clock trading of stock tokens.
- The SEC’s Friday meeting agenda lists a separate crypto offering proposal but does not include this innovation exemption.
- SEC staff maintained in January that tokenized securities remain subject to federal securities laws regardless of their digital format.
- The Wall Street trade group SIFMA urged the SEC to add investor limits and transaction caps to the exemption.
Why it matters
This development signals a potential shift toward integrating traditional stock markets with blockchain technology. If implemented, the exemption could change how investors access and trade listed securities by enabling faster, continuous market activity. However, the lack of a clear timeline and specific regulatory details means markets must wait for further official action before these changes become reality.