The US Securities and Exchange Commission is poised to make a significant shift in its regulatory stance on blockchain-based tokenized trading. An 'innovation exemption' for tokenized trading of public companies is reportedly imminent, allowing decentralized crypto platforms to trade public company shares alongside traditional stock exchanges.
According to sources, the SEC has engaged with hundreds of market participants to gather feedback and tailor the rules for tokenized trading. The proposed regulations would grant third-party tokens the same benefits as common stock, including voting rights and dividends, or risk being delisted.
The move is seen as a significant development in the expansion of blockchain-based tokenization, which has gained traction among Wall Street firms in recent years. This technology offers potentially greater efficiencies for trading and settlement than traditional systems, according to proponents.