The Securities and Exchange Commission has created a temporary regulatory pathway allowing certain US trading platforms to offer tokenized versions of publicly traded stocks, according to the article.
Under the five-year Innovation Exemption, token holders must receive the same rights as traditional shareholders, including dividends and voting privileges. Companies can also block their shares from being tokenized by objecting within 30 days of receiving notice.
The move comes two days after the Senate failed to advance the Clarity Act, leaving the SEC to establish cryptocurrency rules within its existing authority.
Tokenization uses blockchain to create digital representations of financial assets. Supporters say it could improve liquidity and eventually enable round-the-clock trading.
However, regulators also recognize risks including volatility and sharp price movements in thinner markets. The SEC has imposed trading-volume limits to address those concerns.
Companies including Coinbase, Robinhood, Gemini and Kraken have already launched tokenized stock products overseas.
Related Tweet:
SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading https://t.co/g14TfCf2fu
— CNBC Tech (@CNBCtech) September 17, 2026
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TIPP Staff
