SEC Prepares Plan To Let Tokenized Shares Trade On Crypto Platforms
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Key highlights: $31B already tokenized as SEC tests path to stock integration Crypto exchanges prepare for trading licensed equity tokens Wall Street warns SEC to tread carefully with tokenization SEC moves toward tokenized stock trading The US Securities and Exchange Commission (SEC) is drafting a plan that could allow trading of tokenized shares on approved cryptocurrency exchanges. The move would mark a sharp shift in policy, as the regulator explores how to integrate blockchain technology into the traditional markets it has long approached with caution. According to The Information, the initiative remains in its early stages. If implemented, investors could buy and sell equity tokens: digital versions of shares in public companies on licensed trading platforms. The SEC has described tokenization as an “innovation” that deserves to be fostered. From skepticism to support SEC Chair Paul Atkins recently spoke out, noting that regulators should focus on promoting innovation rather than blocking it. He argued that tokenized assets could unlock broader access to markets while reducing costs for participants. Momentum behind tokenized stocks is already building. Platforms like Robinhood and Kraken have started offering experimental products, while Nasdaq has filed for rule changes to list tokenized securities. Coinbase is also rumored to be seeking approval for trading tokenized equities. Not all stakeholders welcome the shift. Some traditional players warn that tokenization must deliver real benefits rather than provide a loophole to bypass rules. In July, Citadel Securities sent a memo cautioning the SEC to ensure reforms support innovation — not regulatory arbitrage. “Tokenized securities must succeed through genuine innovation and efficiency for market participants, not through self-serving regulatory arbitrage,” the company said. The market is gaining momentum Global tokenization has already exploded. According to RWA, more than $716 million in assets have been tokenized, with stock-backed tokens representing about 2%…
Filed under: News - @ October 2, 2025 4:25 am