SEC's innovation exemption for tokenized stocks to come as early as this week: Bloomberg

The U.S. Securities and Exchange Commission is poised to release a new framework for tokenized securities that could transform the U.S. equities market.

Citing sources familiar with the matter, Bloomberg reported on Monday that the SEC is expected to publish its innovation exemption for tokenized stocks as early as this week.

The agency's innovation exemption would allow traditional institutions to experiment with blockchain technology without having to comply with a full registration process.

In the past months, the SEC has greenlit several entities to move forward with tokenized securities. In March, the SEC approved a rule change that would allow Nasdaq to support the trading of tokenized shares.

The SEC also approved the New York Stock Exchange's (NYSE) rule change in April. The NYSE is developing a platform for the trading and onchain settlement of tokenized securities, and established a strategic partnership with OKX in March as part of the endeavor.