SEC Nears Approval of Tokenized Stock Trading as Market Growth Accelerates

The U.S. Securities and Exchange Commission (SEC) is reportedly preparing to introduce new rules that could allow crypto firms to offer tokenized stocks in the coming weeks, according to a Reuters report. The move would mark a major step forward for the tokenized securities market, enabling investors to trade shares of major companies such as Google, Nvidia, and SpaceX around the clock with near-instant settlement.

The development comes after earlier reports suggested that the SEC had paused plans to permit tokenized equities due to concerns surrounding investor protection, custody requirements, and regulatory compliance. Those concerns initially delayed the agency’s proposed innovation exemption framework.

However, industry analysts and legal experts now expect SEC Chair Paul Atkins to unveil the long-anticipated innovation exemption, which would allow crypto companies to test new financial products and business models under a more flexible regulatory environment. The exemption is expected to reduce certain disclosure and compliance burdens while maintaining oversight of emerging technologies.

The anticipated regulatory shift arrives as interest in tokenized stocks continues to grow worldwide. Several crypto platforms already provide tokenized equity products to users outside the United States. Coinbase has also announced plans to launch fully backed 1:1 tokenized stocks, a move that could align with the SEC’s upcoming policy changes.

Recent data from CoinGecko highlights the rapid expansion of the sector. Between January 2024 and May 2026, the number of tokenized stock-related crypto assets surged from 14 to 478, representing growth of more than 3,300%. The real-world asset (RWA) sector also experienced significant expansion during the same period, with the number of projects rising from 64 to 1,282.

Traditional financial institutions are increasingly embracing tokenization as well. Citigroup is reportedly developing tokenized shares of private companies such as OpenAI and Anthropic, initially targeting international investors before potentially expanding access to U.S. clients. Meanwhile, the New York Stock Exchange (NYSE) is building a tokenization platform designed to support 24/7 stock trading, offering investors the benefits of traditional equities combined with faster settlement and greater market accessibility.