The U.S. Securities and Exchange Commission is reportedly preparing an “innovation exemption” that could let blockchain platforms offer tokenized versions of publicly traded stocks. Bloomberg, citing people familiar with the discussions, said the proposal could arrive as early as this week as the agency examines ways to move tokenized securities trading beyond conventional exchanges and into crypto-based venues.
Tokenized shares may need to match common-stock rights
Under the proposal being discussed, tokenized shares issued by third parties would need to carry the same rights as traditional common stock, including dividends and voting access. Tokens that do not meet those standards could face delisting requirements. The report also said SEC Commissioner Hester Peirce has had a central role in advancing the exemption effort, though the final terms are still under negotiation and may change before any formal announcement.
Wall Street firms are building tokenization infrastructure
Tokenization has been gaining support across the financial sector as firms look at blockchain systems that could support 24/7 trading and faster settlement. Earlier this year, Intercontinental Exchange, the parent company of the New York Stock Exchange, said it was preparing a blockchain-based platform for round-the-clock trading and settlement of stocks and exchange-traded funds. The company framed the initiative as part of a broader effort to modernize post-trade infrastructure with distributed ledger technology.
Bullish has also expanded in the segment. Earlier this month, the crypto exchange acquired transfer agent platform Equiniti in a $4.2 billion deal, strengthening its tokenization business. Bullish is led by former NYSE president Tom Farley.
Issuer approval remains a fault line
Backers of tokenized equities say blockchain-based shares could give investors outside the United States, or users without access to traditional brokerage services, exposure to public companies such as Nvidia, Google, and Tesla through crypto platforms. Inside the SEC, though, some officials reportedly remain opposed to allowing tokenized stock trading without direct participation from the underlying issuer.
Brett Redfearn, president of crypto-native tokenization platform Securitize, said that if third parties can tokenize Apple or Amazon without the issuer at the table, there may be no theoretical limit to how many wrappers of the same company can exist at once. In his view, that could create a new layer of market fragmentation and make investors less certain about what their shares are worth at any given moment.
Tokenized investing has also spread into private markets, where blockchain platforms have started offering exposure to high-profile startups before public listings. Previous public statements show that both OpenAI and Anthropic have objected to unauthorized tokenized products tied to their valuations. The SEC discussions surfaced only days after the Senate Banking Committee advanced the CLARITY Act, a bill that would create a federal framework for parts of the digital asset market before heading to a Senate floor vote next month.