The U.S. Securities and Exchange Commission (SEC) is set to unveil a regulatory framework for tokenized stocks as early as this week, according to Bloomberg Law. A so-called “innovation exemption” would permit trading platforms to offer digital versions of listed company shares under a lighter compliance regime—the clearest sign yet that American regulators are warming to tokenized securities.
Innovation exemption paves way for 24/7 equity trading
Tokenized stocks convert physical shares into blockchain-based digital certificates. Unlike traditional markets bound by T+1 or T+2 settlement, these tokens can trade 24 hours a day with near-instant settlement. The SEC’s proposed exemption would allow exchanges to bypass full registration requirements, accelerating adoption. Proponents say the shift solves legacy settlement delays and widens global access; critics warn of liquidity fragmentation and inadequate investor protection.
Wall Street is already mobilizing. The Depository Trust & Clearing Corporation (DTCC), which clears the vast majority of U.S. securities, announced pilot trading of tokenized assets in July 2026, targeting a full rollout by October. Any physical asset already held in DTCC’s system—including stocks and ETFs—could be converted into a tokenized version.
Nasdaq, NYSE, and the $126 trillion infrastructure overhaul
Nasdaq has built a framework that lets companies issue tokenized shares while preserving traditional shareholder rights—a plan the SEC greenlit in March 2026. Meanwhile, Intercontinental Exchange (ICE), parent of the New York Stock Exchange, invested in crypto exchange OKX to gain a foothold in tokenized stocks and crypto derivatives.
The race among top-tier institutions signals a deep overhaul of the $126 trillion global equity market. From settlement to shareholder registry, blockchain protocols are replacing middlemen.
SEC Chair Atkins: “Regulate, don’t enforce”
SEC Chair Paul Atkins has voiced strong support. He argued earlier this month that legacy securities laws cannot accommodate blockchain systems integrating trading, clearing, and settlement into a single on-chain protocol. Rather than relying on heavy-handed enforcement, the SEC should set clear rules for on-chain trading systems, blockchain settlement infrastructure, and crypto custody models, Atkins said. With markets moving toward automation and AI, formalizing these standards is a regulatory priority.