TLDR Tech / Crypto
SEC to Propose Tokenized Stock Framework
The SEC is preparing an "innovation exemption" that would allow trading platforms to offer tokenized versions of publicly traded securities under a lighter regulatory structure, with a proposal expected as early as this week. DTCC plans to run limited production trades of tokenized assets in July ahead of a broader October launch, Nasdaq received SEC approval in March for a blockchain-based share issuance framework, and ICE struck a partnership with OKX to expand into tokenized stocks and crypto-linked products. SEC Chair Paul Atkins has called for formal rulemaking rather than enforcement-driven guidance to accommodate single-protocol systems that combine exchange, clearing, and settlement functions, arguing existing securities rules were not designed for blockchain-based infrastructure. The combined institutional push targets the $126 trillion global equity market, where faster settlement cycles and around-the-clock trading are the primary technical arguments for tokenization.
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