According to Reuters, the US Securities and Exchange Commission is preparing to introduce a new policy that would allow crypto companies to provide blockchain-based tokenized stock trading. The proposed policy covers the tokenized trading of US equities and is described as a change that could have a major impact on the structure of the traditional stock market.
Crypto firms would be allowed to test digital asset business models
SEC Chair Paul Atkins said companies would be allowed to experiment with new digital asset business models without fully complying with existing disclosure and investor protection rules. The report said the scope of those experiments includes tokenized trading of US stocks, which would bring certain equity trading activity onto blockchain-related infrastructure.
The proposal has also drawn concerns from traditional financial institutions. Citadel Securities and SIFMA are among the firms worried that the changes could divert liquidity and create regulatory arbitrage risks. As of now, the SEC has not issued a public comment on the matter.