According to Odaily, citing Reuters, the US Securities and Exchange Commission is preparing a new policy that would allow crypto companies to provide blockchain-based tokenized stock trading. The reported plan covers experiments involving tokenized trading of US equities and has been described as a development that could deliver a significant shock to the structure of traditional stock markets.
Companies 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 having to fully comply with existing disclosure and investor protection rules. The report stated that these experiments would include tokenized trading of US stocks, linking conventional securities activity with blockchain-based infrastructure.
The proposal has also drawn concern from traditional financial institutions. Citadel Securities and SIFMA are among the firms and industry groups that have warned the changes may divert liquidity and create risks of regulatory arbitrage. As of the time of the report, the US SEC had not issued a public comment on the matter.