SEC Exemption Could Unlock 24/7 Trading for Tokenized Stocks

The U.S. Securities and Exchange Commission (SEC) is preparing to introduce an 'innovation exemption' that could allow crypto companies to offer blockchain-based versions of publicly traded stocks.

This move, which analysts say could reshape equity markets and intensify competition with traditional brokerages, would permit firms to test new digital asset business models without complying with all existing SEC disclosure and investor-protection requirements.

Coinbase has indicated it plans to launch tokenized stocks in the United States once regulations permit, while Robinhood, Kraken, and other exchanges already offer similar products outside the U.S.

The market for tokenized public stocks has expanded rapidly, from a few million dollars at the end of 2024 to over $6.4 billion according to CoinMarketCap.