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      SEC Approves Framework for Tokenized Stocks in the U.S.

      The U.S. Securities and Exchange Commission (SEC) has announced a new framework that will allow for the trading of tokenized stocks, marking a significant innovation in the financial markets. This initiative introduces a five-year exemption that enables eligible platforms to trade tokenized U.S. stocks through blockchain-based liquidity pools, potentially paving the way for 24/7 trading. While the framework is not yet operational, it could begin within 30 days.

      The SEC's approval pertains solely to secondary trading of existing equities, meaning that only stocks already publicly traded can be tokenized. Investors holding these tokenized stocks will retain the same economic interests, including dividends and voting rights, as traditional shareholders. Companies will have a 30-day window to object if a third party seeks to tokenize their stock, ensuring that firms maintain some control over the process.

      The trading of these tokenized stocks will occur on a public blockchain with permissioned access, allowing for transparency while ensuring compliance with sanctions and anti-money laundering regulations. Notably, tokenized stocks can be traded in pairs with other crypto assets, enabling innovative trading strategies akin to decentralized finance (DeFi) models. However, trading will be limited to a small pilot program, with specific caps on the number of symbols and trading volumes for different tiers of stocks. Exchanges will determine the availability of around-the-clock trading, and the framework includes exemptions from certain regulatory requirements for participating venues.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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