The U.S. Securities and Exchange Commission (SEC) could grant a major exemption for tokenized stocks as early as this week. This move would enable trading of digital versions of publicly listed securities on crypto platforms, effectively creating a regulated bridge between traditional finance and blockchain technology.
According to market insights, the proposal has been in development since the launch of the Crypto Project initiative in 2025 by SEC Chairman Paul Atkins. Earlier this year, he indicated that the agency was “on the verge” of approving the framework.
How the exemption would work
The proposed exemption would allow selected companies to operate under a simplified regulatory framework for up to three years. During this period, they would be able to:
🔹 Issue tokenized stocks and ETFs
🔹 Trade them on blockchain-based platforms
🔹 Operate without full SEC registration (subject to certain limits)
At the end of the period, projects would either need to fully register with the SEC or demonstrate sufficient decentralization to fall under the oversight of the Commodity Futures Trading Commission (CFTC).
Atkins also emphasized that the nature of a stock does not change based on its form — whether it exists as paper, a database record, or a blockchain token. He has also expressed support for the involvement of decentralized applications and automated market makers (AMMs).
DTCC prepares testing and production rollout
A central role in this transition is played by the Depository Trust & Clearing Corporation (DTCC), which processes the majority of equity transactions in the United States.
DTCC plans to:
🔹 Launch tokenized asset trading in a testing environment in July
🔹 Expand the program and move to production in October
The pilot includes both equities and ETFs, with underlying assets securely held within DTCC’s custody system.
Traditional exchanges are already building infrastructure
Major exchanges such as Nasdaq and New York Stock Exchange (NYSE) are actively developing blockchain-based solutions.
Nasdaq is working on a blockchain-powered stock issuance platform that preserves all investor rights. Meanwhile, NYSE is planning to introduce 24/7 trading and settlement of tokenized assets and is preparing new rules governing order handling, routing, execution, and settlement.
Crypto platforms are moving ahead
While regulation is still evolving, crypto platforms are already seeing traction:
🔹 Kraken has recorded over $25 billion in trading volume for its xStock offering
🔹 Robinhood processed millions of tokenized asset trades within the first week
🔹 Securitize launched regulated blockchain-based stock trading with real ownership
Additionally, tZERO, backed by Intercontinental Exchange, is preparing for its IPO.
Regulators and market players remain cautious
Not everyone is fully on board. SEC Commissioner Hester Peirce has warned that while the exemption is a meaningful step, it will not transform the financial system overnight.
Major players such as Citadel Securities have also raised concerns, calling for clear regulatory structures before full deployment. The primary risks include investor protection and potential regulatory gaps.
There are also open questions about whether blockchain-based “atomic settlement” could conflict with the current T+1 settlement standard.
Rapid growth meets regulatory uncertainty
Tokenized real-world assets reached approximately $27 billion in value by April 2026, marking an 85% year-over-year increase, largely driven by institutional investors.
The lack of regulatory clarity in the U.S. has been a major barrier so far. If the SEC proceeds with this exemption, it could represent a major step toward integrating traditional financial markets with the crypto ecosystem.
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