SEC Eyes Tokenized Securities Exemption That Could Enable 24/7 Stock Trading

TLDR

• SEC could unveil its tokenized securities innovation exemption as soon as August 14.
• The framework could allow eligible tokenized stocks to trade around the clock on blockchain networks.
• Public companies could gain the right to object to third parties tokenizing their shares without approval.
• SEC is considering AML requirements and U.S.-entity rules for tokenized securities platforms.
• The SEC will meet August 14 to consider rules for certain investment contracts involving crypto assets.

The U.S. Securities and Exchange Commission could unveil an innovation exemption for tokenized securities as soon as Friday, August 14, creating a potential route for blockchain-based versions of stocks to trade around the clock. The agency is also preparing to consider a separate framework for certain crypto-related investment contracts.

The tokenization framework could allow traditional securities to trade through blockchain infrastructure while exempting eligible platforms from some existing requirements. The SEC is considering safeguards that would give public companies a way to object when third parties seek to tokenize their shares without approval.

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