- The US SEC may allow trading of tokenized shares without the consent of public companies.
- The tokens will be traded on decentralized crypto platforms and may not provide voting rights or dividends.
The Trump administration plans to unveil a framework for trading tokenized, or digital, versions of securities, reported Bloomberg News reported on Monday.
The US Securities and Exchange Commission is expected to issue an “innovation exemption” for tokenized stocks as early as this week. This will allow stock trading to move to crypto platforms, potentially creating a new legal channel for stock trading outside of traditional exchanges.
According to Bloomberg, the Securities and Exchange Commission (SEC) is preparing to allow the trading of tokens that do not have the backing or approval of the public companies whose shares they track.
The tokens will be traded on decentralized crypto platforms and may not provide traditional shareholder rights such as voting rights or dividends.
SEC Chairman Paul Atkins expressed support for this initiative. He recently stated that the agency is considering formal rulemaking for online trading systems, blockchain-based settlement infrastructure, and cryptocurrency custody models, as financial markets become increasingly automated and driven by artificial intelligence.
Atkins noted that existing securities regulations are unsuitable for blockchain-based systems that integrate exchange, clearing, and settlement functions into a single protocol. He argued that the SEC should refine the rules through regulation, not enforcement.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/