The SEC plans to release a tokenized stock innovation exemption as soon as May 18, 2026. The exemption would create a new framework for trading tokens that represent ownership or exposure to publicly traded companies. Nasdaq and NYSE previously received approvals in March and April 2026 that allowed tokenized versions of select equities and ETFs to trade alongside traditional shares using the Depository Trust Company’s tokenization pilot. Those approvals kept tokenized trading within existing market structure, while the new exemption targets broader onchain trading. It is intended to let crypto-native platforms offer tokenized stocks during an experimental period under lighter regulatory requirements in certain cases. The process included industry comments and concerns about investor protections and competition, and the expected framework includes guardrails such as exposure limits and disclosure requirements.
"The SEC, under Chair Paul Atkins, plans to release a tokenized stock innovation exemption as soon as May 18, 2026. The framework could open U.S. equity markets to platforms like Coinbase without full broker-dealer registrations. The exemption follows Nasdaq and NYSE tokenized trading approvals in March and April 2026, signaling accelerating onchain adoption."
"The exemption creates a new framework for trading tokens that represent ownership or exposure to publicly traded companies. People familiar with the matter told Bloomberg the move is imminent, placing it among the most significant regulatory actions taken under SEC Chair Paul Atkins. The Trump administration has pushed steadily to integrate blockchain technology into traditional securities markets since early 2025."
"Where the Nasdaq and NYSE approvals kept tokenized trading within the existing market structure, the new exemption targets broader onchain trading. It is designed to allow crypto-native platforms to offer tokenized stocks under lighter regulatory requirements during an experimental period. Under the expected framework, platforms may be able to offer tokenized stocks without securing full broker-dealer or exchange registrations in certain cases."
"The SEC has discussed the exemption since mid-2025 as part of what Atkins called Project Crypto. Industry participants submitted comments throughout that process, including pushback from traditional exchanges that warned of diluted investor protections and unfair competition. The exemption is expected to include guardrails such as exposure limits, disclosure requirement"
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