SEC Nears Exemption to Let Tokenized Shares Trade on Blockchains
The reported pilot would open supervised tests of blockchain versions of listed stocks and could push trading off traditional exchanges, prompting urgent rules on investor rights and market stability.
Overview
- Reports on Friday say the U.S. Securities and Exchange Commission is close to issuing an innovation exemption that would permit supervised tests of tokenized versions of listed stocks.
- The exemption could allow third parties to issue digital tokens tied to existing shares without issuer consent, which would move some trading activity onto blockchain platforms.
- Market metrics show fast growth in onchain demand with Hyperliquid reporting $2.6 billion in real‑world‑asset open interest and RWA.xyz listing about $1.53 billion in tokenized equity value and $3.4 billion in monthly transfers.
- Analysts warn that trading across multiple blockchain venues could split order depth, create price divergence, raise execution costs for large trades, and shift transaction fee revenue away from U.S. exchanges.
- Exchanges and infrastructure firms including the NYSE, Nasdaq, Securitize, and the DTCC are building tokenization systems and pilots to retain control while regulators consider rules on custody, dividend and voting rights, and dispute remedies.