"According to The Information, citing unnamed sources, the SEC is moving quickly to implement the stocks-on-the-blockchain plan as part of the Trump Administration's broader pro-crypto agenda: "The SEC's effort would provide exemptive relief for blockchain-based trading of stocks, which means some rules governing stock trading wouldn't apply, the people said. The scope or time limit of the exemption is unclear. The effort would allow trading to begin quickly.""
"Tokenized stocks offer the same thing as their traditional counterpart: an opportunity for an investor to own a piece of a company, and earn a profit if the value of the stock increases or if the firm pays a dividend. But the mechanics of ownership are not the same. In the case of a conventional stock purchase, the customer puts in a buy order, and the brokerage acquires the stock on their behalf, assigning the"
Regulators at the Securities and Exchange Commission are moving to provide exemptive relief to allow blockchain-based trading of stocks, potentially enabling rapid launch of on-chain equity trading. The exemption could exclude some traditional rules governing stock trading, though its scope and duration remain unclear. Crypto platforms such as Coinbase, Robinhood, and Kraken stand to expand offerings by issuing tokenized versions of U.S. equities usable within crypto wallets. Tokenized stocks grant economic exposure and dividend rights similar to conventional shares but rely on different custody and settlement mechanics. Major market makers like Citadel Securities warn about investor risks and urge caution. Tokenized offerings already operate in some overseas markets, helping investors access U.S. equities with lower commissions.
Read at Fortune Crypto
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