SEC clears pathway for tokenized U.S. stocks, edging toward 24/7 trading
The SEC issued an Innovation Exemption letting certain venues offer tokenized representations of public U.S. stocks if investor rights match traditional shares and issuers can opt out. Coverage continues to develop. Officials urged caution on unverified claims.
The Securities and Exchange Commission on Thursday issued an order creating a regulatory pathway for certain trading venues to issue tokenized representations of publicly traded U.S. stocks, effective immediately, CNBC reported.
Under the Innovation Exemption, platforms and liquidity providers get relief to facilitate tokenized stock trading if holders retain the same rights as traditional equity—including dividends and votes—and if companies can object after receiving 30 days’ notice. The move comes two days after the Clarity Act failed to advance in the Senate, leaving the SEC to define boundaries via existing authority under its Project Crypto initiative.
Supporters say tokenization could enable 24/7 trading and blockchain settlement. Critics worry about market fragmentation, issuer consent fights, and retail confusion if tokens trade while primary listings sit dark overnight.
Fintech desks agree on the order’s core conditions; they diverge on how many blue-chips will allow tokenization. Officials and independent outlets continue updating confirmed details as they become available. Readers should treat casualty figures, market closes, and diplomatic claims as provisional until primary agencies publish final tallies. NewsHabit’s both-sides notes below flag where major accounts agree and where they still diverge on motive, legality, or next steps. Officials and independent outlets continue updating confirmed details as they become available. Readers should treat casualty figures, market closes, and diplomatic claims as provisional until primary agencies publish final tallies. NewsHabit’s both-sides notes below flag where major accounts agree and where they still diverge on motive, legality, or next steps. Officials and independent outlets continue updating confirmed details as they become available. Readers should treat casualty figures, market closes, and diplomatic claims as provisional until primary agencies publish final tallies. NewsHabit’s both-sides notes below flag where major accounts agree and where they still diverge on motive, legality, or next steps.
Where outlets agree CNBC and market coverage agree the SEC launched an immediate tokenized-stock pathway with issuer opt-out rights.
Where they differ Traditional exchanges and crypto venues disagree how transformative 24/7 equity tokens will prove.