The U.S. Securities and Exchange Commission is reportedly developing an innovation exemption that would permit blockchain platforms to trade tokenized versions of publicly listed stocks, including tokens created without explicit authorization from the issuing companies. According to Bloomberg, the proposal may be announced as early as this week, signaling the agency’s interest in broadening tokenized securities trading beyond traditional exchanges into cryptocurrency markets.
Sources familiar with the matter indicate that the SEC has discussed requiring tokenized shares issued by third parties to carry the same rights as conventional common stock, such as voting privileges and dividend entitlements. Tokens failing to meet these standards could face delisting. Commissioner Hester Peirce is said to be instrumental in advancing this initiative, though final details remain subject to change.
Wall Street firms are increasingly exploring tokenization, with Intercontinental Exchange—parent of the NYSE—preparing a blockchain platform for around-the-clock trading and settlement. Crypto exchange Bullish recently acquired transfer agent Equiniti in a $4.2 billion deal to bolster its tokenization business. Proponents argue that tokenized equities could provide international investors or those without brokerage access a pathway to invest in companies like Nvidia and Tesla via crypto platforms.
However, internal SEC opposition persists, with concerns that third-party tokenization without issuer involvement could fragment markets. Brett Redfearn of Securitize warned that multiple token wrappers for the same company could confuse investors about share valuations. Tokenized private market offerings have also drawn objections from companies like OpenAI and Anthropic, which have publicly opposed unauthorized products tied to their valuations.
The SEC’s discussions come shortly after the Senate Banking Committee advanced the CLARITY Act, legislation aimed at creating a federal framework for digital assets, which is set for a Senate vote next month.