The SEC is expected to launch a regulatory exemption for tokenized stocks as soon as this week, accelerating the push to bring US equity trading onto blockchain infrastructure, Bloomberg reported Monday.
The framework would allow digital tokens linked to public-company shares to trade on decentralized platforms, including tokens issued by third parties without the consent of the companies involved.
These third-party tokenized securities would effectively create parallel blockchain-based markets for publicly traded equities. While they would mirror stock prices, they may not necessarily include traditional shareholder rights unless platforms choose to provide them. Regulators are said to be considering restrictions on platforms that omit rights such as dividends or voting access.
The proposal represents one of the strongest regulatory signals yet that US authorities are willing to test whether securities markets can operate outside of parts of the conventional financial system.
Supporters argue that tokenization could improve market efficiency through faster settlement and 24/7 trading. However, critics warn that it may weaken transparency, price discovery, and investor protections.
