SEC Plans Tokenized Stock Exemption to Boost Onchain Trading
- The SEC, led by Chair Paul Atkins, aims to release a tokenized stock innovation exemption by May 18, 2026.
- This framework could allow platforms like Coinbase to engage in U.S. equity markets without full broker-dealer registrations.
- Nasdaq and NYSE received approvals for tokenized trading in March and April of the same year, marking increased onchain adoption.
- The exemption is part of “Project Crypto,” aiming for broader onchain trading with lighter regulatory requirements.
- Tokenized stocks will still adhere to federal securities laws based on economic substance.
The SEC’s upcoming exemption represents a significant shift towards integrating blockchain technology within traditional securities markets, aligning with the Trump administration’s push since early-2025. This move could enable crypto-native platforms to offer tokenized stocks more freely under specific conditions.
By allowing platforms like Coinbase to participate without full broker-dealer registrations, the SEC aims to modernize market structures through blockchain-based trading of regulated securities at scale in the United States. (Source)
