What is the SEC’s proposed tokenised stock framework?

The SEC is reportedly preparing an “innovation exemption” that could allow platforms to trade blockchain-based versions of public stocks under a lighter regulatory structure. The proposal would mark one of the clearest US regulatory moves supporting tokenised securities.

What are tokenised stocks?

Tokenised stocks are digital versions of equities issued and traded on blockchain networks. Supporters say they can enable faster settlement, 24/7 trading and broader global access compared with traditional stock markets.

Why does the SEC’s tokenised stock proposal matter for crypto investors?

The proposal signals growing acceptance of blockchain infrastructure within mainstream finance. For crypto investors, it could accelerate institutional adoption of tokenisation technology and strengthen links between traditional markets and digital assets.

Which Wall Street firms are building tokenised stock infrastructure?

Major financial institutions including Depository Trust & Clearing Corporation, Nasdaq and Intercontinental Exchange are actively developing tokenised securities systems and blockchain settlement infrastructure.

How could tokenised stocks change traditional markets?

Tokenised securities could reduce settlement delays, automate clearing processes and enable around-the-clock trading. Advocates believe blockchain infrastructure may lower costs and modernise parts of the global equity market over time.

What risks are associated with tokenised stocks?

Critics have warned tokenised securities could fragment liquidity across multiple trading venues and create investor protection challenges. Regulatory uncertainty and cybersecurity risks also remain major concerns for institutions and retail traders.

What did SEC Chair Paul Atkins say about blockchain-based markets?

Paul Atkins said existing securities rules do not properly fit blockchain systems that combine trading, clearing and settlement into one protocol. He argued the SEC should provide clearer rules through regulation rather than enforcement actions.

What is DTCC planning with tokenised assets?

Depository Trust & Clearing Corporation plans to begin limited production trades of tokenised assets in July before a broader rollout in October. The system will use tokenised stocks and ETFs backed by assets already held within DTCC infrastructure.

Image for illustrative purposes only. Not a real photo.

SEC eyes tokenised stock trading framework

Written by Mahathir BayenaPublished May. 19 2026

The US Securities and Exchange Commission is reportedly preparing a new framework for tokenised securities trading platforms as Wall Street firms deepen efforts to move traditional assets onto blockchain infrastructure.

According to Bloomberg Law, the SEC could introduce an “innovation exemption” as early as this week that would allow platforms to offer blockchain-based versions of publicly traded securities under a lighter regulatory structure.

SEC Chair Paul Atkins said earlier this month the agency was considering formal rulemaking for onchain trading systems, blockchain settlement infrastructure and crypto custody models as financial markets become increasingly automated and AI-driven.

Tokenised stocks are digital blockchain-based versions of equities designed to enable faster settlement and round-the-clock trading, though critics have raised concerns around liquidity fragmentation and investor protections.

Depository Trust & Clearing Corporation said it plans to begin limited production trades of tokenised assets in July before a broader rollout in October using tokenised stocks and ETFs backed by assets already held within its infrastructure.

Nasdaq is also developing a blockchain-based share issuance framework after the SEC approved its tokenised securities proposal in March, while Intercontinental Exchange expanded plans for tokenised stocks and crypto-linked products through a partnership tied to crypto exchange OKX.

Atkins said existing securities rules were not designed for blockchain-based systems that combine trading, clearing and settlement into a single protocol, arguing the SEC should provide regulatory clarity through rulemaking rather than enforcement actions.