The SEC Is Preparing an Innovation Exemption That Would Allow Tokenized Trading of Public Company Stocks

[madmax]

The US Securities and Exchange Commission is reportedly preparing an innovation exemption that would allow blockchain-based tokenized trading of public companies, potentially arriving as early as this week according to Bloomberg. The exemption would expand trading of public company shares beyond traditional stock exchanges to decentralized crypto platforms, and notably would apply even to companies that have not consented to third-party tokens tracking their share prices. SEC Commissioner Hester Peirce reportedly led the push for the exemption, and the agency is said to have consulted with hundreds of market participants to gather feedback on how best to shape the rules. Details have not been finalized and could still change before any official announcement.One key condition being proposed is that third-party tokens must carry the same benefits as common stock, including voting rights and dividends, or risk being delisted from the platforms on which they trade.

The requirement is designed to ensure tokenized shares are genuine representations of ownership rather than purely speculative instruments with no connection to the underlying corporate rights. The move follows growing interest from Wall Street in blockchain-based settlement and trading infrastructure, with the NYSE's parent company Intercontinental Exchange announcing earlier this year plans to launch a tokenization platform for 24/7 stock and ETF trading using a blockchain post-trade system. Despite the expected exemption, Bloomberg reported that some SEC officials internally do not support the decision, suggesting the move is not without controversy even within the agency itself.

[mendez]

SEC exemption applies even without company consent, Anthropic not happy

[mendez]

Bloomberg said this week possibly, details still being finalized