SEC Reviewing Plan To Allow Blockchain-Based Stock Trading On Exchanges

The United States Securities and Exchange Commission (SEC) is reviewing plans to allow blockchain-based versions of publicly traded stocks on approved cryptocurrency ￰0￱ platforms, including Nasdaq, Robinhood, Coinbase, and Kraken, are seeking regulatory approval or already testing tokenized stock ￰1￱ Exploring Blockchain Versions Of Publicly Traded Stocks The United States Securities and Exchange Commission (SEC) is reviewing a proposal that could allow blockchain-based versions of publicly traded stocks on cryptocurrency ￰2￱ reports first emerged on X, and while they remain in early development, they have created a wave of attention within the SEC and anticipation within the crypto ￰3￱ Geraci posted about the developments on X, stating, “NYSE, *the world’s largest stock exchange*, just met w/ SEC Crypto Task Force… The topic?

You guessed ￰4￱ equities. I know you’re paying attention now.” The development could be a significant step for tokenized assets, allowing investors to buy and sell shares using blockchain technology instead of traditional stock ￰5￱ Of The Proposal The proposed framework would allow investors to buy and sell stock tokens on approved crypto ￰6￱ tokens would represent legal ownership of the stocks in publicly traded ￰7￱ transfers would be recorded on the blockchain instead of traditional clearing ￰8￱ Chair Paul Atkins has praised tokenization, calling it an “innovation the agency should advance.” He also urged regulators to focus on promoting innovation in the marketplace, noting that tokenized stocks could improve market access and reduce ￰9￱ and financial platforms are already preparing for tokenized ￰10￱ has requested the SEC to approve a rule change that would allow it to list tokenized ￰11￱ exchange Coinbase is also preparing a licensing application to operate as a broker for digital securities.

Meanwhile, Robinhood and Kraken have already begun offering tokenized stock products and have conducted early experiments with synthetic stock tokens in overseas ￰12￱ Raises Concerns Traditional finance companies have raised concerns regarding the ￰13￱ Securities submitted a letter to the SEC’s Crypto Task Force in July, urging ￰14￱ firm asked regulators to ensure that tokenization delivers genuine benefits instead of exploiting regulatory ￰15￱ stated that tokenized securities must achieve success through innovation and efficiency, and warned against what it called “regulatory arbitrage.” However, despite industry concerns, momentum and interest in tokenization are ￰16￱ this year, BlackRock, the world’s largest asset manager, announced the creation of a tokenization ￰17￱ move indicated growing confidence in blockchain-enabled finance among institutional ￰18￱ pilot projects around tokenized stocks exist in Europe and Asia, where regulated exchanges are conducting real-time settlement of digital securities.

Disclaimer: This article is provided for informational purposes ￰19￱ is not offered or intended to be used as legal, tax, investment, financial, or other advice