According to Bloomberg Law, the SEC is preparing a new regulatory framework that would allow digital versions of publicly traded shares to operate under more flexible conditions. The proposal, described as an “innovation exemption,” aims to accelerate the integration of tokenized equities into financial markets without being constrained by certain legacy regulations. The framework could reportedly be unveiled as early as this week.
Blockchain-based tokenized stocks offer advantages such as 24/7 trading and significantly faster settlement times compared to traditional markets. Supporters argue that the technology could reduce transaction costs and improve global market accessibility, while regulators continue to focus on investor protection and liquidity concerns.
Major Wall Street institutions have already started positioning themselves for this transition. DTCC plans to begin limited production of tokenized assets in July before a broader rollout in October, while Nasdaq and ICE are also developing blockchain-based equity infrastructure and crypto-linked products. SEC Chairman Paul Atkins recently signaled that the agency intends to move away from enforcement-driven policies toward clearer regulations, including official frameworks for blockchain-powered trading and custody systems.
