SEC May Launch Tokenized Stock Trading Framework Amid Wall Street Blockchain Push

The U.S. Securities and Exchange Commission (SEC) is reportedly preparing a new regulatory framework that could accelerate the growth of tokenized stocks and blockchain-based securities trading in the United States. According to a Bloomberg Law report published Monday, the SEC may soon introduce an “innovation exemption” that would allow trading platforms to offer digital versions of publicly traded stocks under a more flexible regulatory structure.

Sources familiar with the matter said the proposal could be unveiled as early as this week. If approved, the initiative would represent a major step toward integrating blockchain technology into traditional financial markets and could encourage wider adoption of tokenized securities among Wall Street institutions.

Tokenized stocks are digital representations of equities issued and traded on blockchain networks. Advocates believe these blockchain-based assets can improve market efficiency by enabling faster settlement, lower operational costs, and 24/7 trading access. However, critics continue to raise concerns over investor protection, liquidity fragmentation, and regulatory oversight.

Several major financial firms are already expanding into the tokenized asset sector. The Depository Trust & Clearing Corporation (DTCC) recently announced plans to begin limited production trading of tokenized assets in July, with a broader rollout expected in October. The system will support tokenized versions of stocks and ETFs backed by assets already held within DTCC’s infrastructure.

Nasdaq is also developing a platform for blockchain-based shares while maintaining traditional ownership rights. The SEC approved Nasdaq’s tokenized securities initiative in March. Meanwhile, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has partnered with crypto exchange OKX to explore tokenized stocks and crypto-related financial products.

SEC Chair Paul Atkins recently expressed support for modernizing financial regulations to accommodate blockchain settlement systems, crypto custody solutions, and onchain trading infrastructure as digital finance and AI-driven markets continue to evolve.