Odaily reported that the US Securities and Exchange Commission is preparing to introduce a new policy that would allow crypto companies to offer blockchain-based tokenized stock trading. Under the planned approach, companies would be permitted to test new digital asset business models without fully complying with existing disclosure and investor protection rules.
Tokenized US Stock Trading Included in the Trial Scope
According to SEC Chair Paul Atkins, the businesses allowed under the proposed framework would include tokenized trading of US stocks. In this context, tokenized stock trading refers to stock-related transactions recorded and transferred through blockchain infrastructure. The proposal focuses on giving crypto companies room to test such business models rather than immediately requiring them to operate under the full set of current securities market rules.
The proposal has raised concerns among traditional financial institutions including Citadel Securities and SIFMA. These institutions argue that the changes could divert liquidity away from existing markets and create risks of regulatory arbitrage. As of now, the US Securities and Exchange Commission has not issued a public comment on the matter.