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      SEC Commissioner Indicates Tokenized Stock Trading Venues Could Emerge Soon

      U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce and Chief Legal Counsel of the SEC Crypto Working Group, Taylor Lindman, announced that the first tokenized stock trading venues may begin to materialize as early as the next quarter. This development follows the SEC's recent issuance of a five-year conditional exemption, which allows eligible platforms to facilitate the trading of tokenized versions of U.S. listed stocks on public blockchains through automated market makers and liquidity pools.

      Lindman noted that institutions anticipate companies will soon release operational plans, marking the initial public indication of which firms are poised to enter this new market. He suggested that there might be a delay between these announcements and the actual submission of notices to the SEC, potentially occurring next quarter. The SEC requires venues to notify the agency within one business day after making their announcements.

      Peirce addressed industry concerns regarding limitations on the number of stocks and trading volumes, asserting that the thresholds are sufficiently high for companies to operate effectively. She characterized the current framework as a transitional measure aimed at integrating tokenized stocks into regulated markets, emphasizing that the five-year relief is intended as a temporary solution leading to more permanent regulations. Additionally, she mentioned that companies will have a 30-day period to object to the tokenization of their stocks by non-affiliated third parties, although she does not foresee significant objections.

      © 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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