SEC Set to Allow Crypto Tokenized Stock Trading Under Innovation Exemption
This week, the U.S. Securities and Exchange Commission (SEC) is anticipated to unveil an "innovation exemption" that will permit publicly traded companies to represent their stocks as crypto tokens on blockchain platforms. This development will facilitate trading without the need for issuer approval or conventional shareholder rights. In February 2026, SEC Chair Paul Atkins and Commissioner Hester Peirce introduced a temporary framework. The SEC clarified the definition of tokenized securities in January 2026, which falls under federal securities law. Major players are gearing up: DTCC aims to initiate tokenized asset trading in July, Nasdaq is creating a blockchain framework, and Intercontinental Exchange is collaborating with OKX. Critics express concerns about weakened investor protections and liquidity challenges. The global equity market stands at $126 trillion.
Key facts
- SEC expected to release innovation exemption for tokenized stocks as soon as this week.
- Tokenized stocks are crypto tokens representing public company shares, defined by SEC in January 2026.
- Exemption allows trading on decentralized platforms without issuer consent or traditional shareholder rights.
- Framework includes volume caps, white-listed buyers/sellers, and automated market makers.
- SEC Chair Paul Atkins and Commissioner Hester Peirce outlined the plan in February 2026.
- Part of SEC's Project Crypto initiative launched August 2025.
- DTCC plans limited production trades of tokenized assets in July 2026, broader launch in October.
- Nasdaq developing framework for blockchain-based shares, approved by SEC in March 2026.
- Intercontinental Exchange (NYSE parent) partnering with OKX for tokenized stocks.
- World Federation of Exchanges warned of diluted investor protections and distorted competition.
- Global equity market valued at $126 trillion.
- Coinbase sought SEC approval in 2025 for tokenized equities; Kraken's xStocks offers 100 tokenized U.S. stocks/ETFs outside U.S.
Entities
Institutions
- U.S. Securities and Exchange Commission
- Depository Trust & Clearing Corporation
- Nasdaq
- Intercontinental Exchange
- New York Stock Exchange
- OKX
- Coinbase
- Kraken
- World Federation of Exchanges
- Cboe
- CME Group
- Token Terminal
- NFT Plazas
Locations
- United States