SEC Preparing ‘Innovation Exemption’ Framework for Tokenized Stock Trading

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The SEC is developing a new regulatory framework that would allow digital versions of publicly traded securities to trade on blockchain networks in the US.

The SEC is preparing to introduce an ‘innovation exemption’ that would create a new framework for blockchain-based tokenized stock trading in the United States, according to reporting from WatcherGuru. The proposal would permit digital versions of publicly traded securities to trade on blockchain networks, expanding investor access to US stock exposure through tokenized assets. The plan could be released as soon as this week.

The framework forms part of the Trump administration’s broader effort to loosen restrictions around crypto markets. It would establish a clearer regulatory pathway for the SEC to oversee tokenized securities trading on US blockchain networks, marking a significant shift in how digital asset versions of traditional stocks are regulated.

The development signals potential expansion of tokenized finance infrastructure within the existing US regulatory structure, allowing institutional and retail investors to trade blockchain-based representations of publicly traded company shares.

Sources: WatcherGuru

This article was produced with the help of AI flows.

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