SEC Exemption Allows Continuous Trading of Tokenized Stocks
- The SEC granted a five-year exemption for the continuous trading of tokenized National Market System (NMS) stocks without venues registering as exchanges.
- Tokens must be backed one-to-one by the underlying share and carry the same rights, such as votes and dividends.
- Strategy holds 845,050 BTC and $6.4 billion in USD assets, but STRC trades below its $100 par value.
- The SEC’s relief aims to foster innovation while maintaining investor protections and market integrity standards.
- STRC is a variable-rate perpetual preferred share collateralized by Strategy’s bitcoin and dollar reserves.
The SEC’s recent exemption facilitates continuous onchain trading of tokenized stocks like MSTR and STRC in U.S. markets, addressing distribution challenges for Strategy’s digital credit offerings. This move is seen as a significant step towards integrating digital assets into traditional capital markets while ensuring regulatory compliance.
With STRC trading below its par value, broader access through continuous trading could help stabilize its market position amid fluctuating Bitcoin prices (Source)
