GoKawiilSEC opens door for tokenized stock trading with new Innovation Exemption
The SEC issued an order Thursday creating an immediate regulatory pathway allowing certain trading venues to offer tokenized versions of publicly traded U.S. stocks. The five-year exemption requires token holders to retain the same rights as traditional shareholders and lets companies object to having their securities tokenized. The move follows the Senate's failure to advance the Clarity Act, a crypto market structure bill, two days earlier.
GoKawiil's interpretation of the reporting above, not reported fact.
With Congress stalled on crypto legislation, the SEC is stepping in to shape how tokenized securities are regulated, potentially setting precedent for future rulemaking or legislation. This could accelerate a shift toward round-the-clock trading of stocks via blockchain-based tokens, reshaping traditional market structures and settlement systems.
- SEC's Innovation Exemption allows tokenized trading of U.S. stocks effective immediately.
- Token holders must have equivalent rights to traditional shareholders, and firms can opt out of tokenization.
- The move follows the Senate blocking the Clarity Act, leaving the SEC to fill the regulatory gap via its Project Crypto initiative.
Source: cnbc.com — Tanaya Macheel, 2026-09-17
Published there as: “SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading”
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