SEC Introduces New Framework for Tokenized Stock Trading
- The SEC allows regulated venues to tokenize up to 75 stocks for the most liquid categories.
- Each venue can handle no more than 0.25% of average daily trading volume for these stocks.
- For second-tier stocks, venues may tokenize up to 250 names and manage 2.5% of average daily volume.
- A qualifying venue could facilitate trading of approximately 100,000 tokenized Tesla shares, valued at about $36.6 million.
- The software must be public and auditable on a public blockchain, while access remains permissioned.
This new framework aims to integrate technology from decentralized finance, allowing regulated environments to explore tokenization while maintaining control over trading access.
The SEC’s approach permits limited tokenization, starting with a cap of up to 75 stocks, reflecting a cautious entry into this emerging market segment.
