The U.S. Securities and Exchange Commission could introduce an “innovation exemption” for tokenized stocks as soon as Friday, according to CoinDesk, citing Bloomberg. The reported move would create a lighter compliance route for around-the-clock stock trading onchain.
A lighter framework for tokenized public equities
Under the reported structure, publicly traded shares such as Apple, Tesla, and Nvidia could be turned into blockchain-based tokens and traded 24/7 on decentralized platforms.
The framework would also allow fractional purchases and near-instant settlement, according to the report. Those features are generally unavailable in traditional stock markets.
No voting rights or dividends
One key restriction stands out: the tokens would not come with traditional shareholder rights. That means holders would not receive voting rights or dividends.
Bloomberg’s report, as cited by CoinDesk, said the policy is being led by SEC Chair Paul Atkins. It also said Atkins had signaled the direction of an innovation exemption months earlier, and that the broader approach aligns with the Trump administration’s push to loosen crypto restrictions.
The onchain market for tokenized stocks has already surpassed $1.4 billion, the report said.
Possible timing: the Aug. 14 SEC meeting
The timing may be tied to the SEC’s Aug. 14 commission meeting previously referenced by Chain News. On that day, the agency is set to present the “Reg Crypto” framework, which would create a compliance path for crypto asset issuance. The tokenized stock exemption is expected to be introduced in the same policy wave.
Still, the report remains based on Bloomberg’s account, and the SEC has not formally announced the exemption. Even if it is approved on Friday, the step would only begin the rulemaking process. It would still need to go through public comment and a further vote before taking effect.
The idea was paused in May
This is not the first time the exemption has surfaced. The report said the SEC paused the proposal in May after concerns were raised by exchange officials and market participants. One of the debated issues was whether trading in third-party tokens should be allowed.