The U.S. Securities and Exchange Commission is taking a major step toward bringing traditional financial markets onto blockchain infrastructure.
SEC Chair Paul Atkins said the agency’s new “Innovation Exemption” is designed to facilitate onchain trading of certain tokenized U.S. stocks while maintaining investor protection and market integrity requirements.
Under the temporary framework, approved Tokenized Securities Venues can trade eligible tokenized stocks using permissioned automated market makers and liquidity pools.
Importantly, the SEC says tokenized stocks must provide holders with the same rights and privileges as traditional securities, including dividend and voting rights. Issuers will also have an opportunity to object to their securities being traded on these venues.
Atkins has argued that bringing financial markets onchain could help the United States maintain its position in global financial infrastructure and innovation. In recent remarks, he described regulatory clarity as important to keeping the next generation of financial infrastructure in America.
🔥 Why It Matters
Tokenization could connect traditional stocks with blockchain based infrastructure, potentially enabling faster settlement, new trading models and broader access to digital financial markets.
The SEC’s exemption is temporary and conditional, meaning the agency will use the experience and public feedback from this framework as it considers longer term rules.
🇺🇸 Wall Street meets blockchain.
Could tokenized stocks become a major part of the future financial system? 👀
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