The U.S. Securities and Exchange Commission has postponed its planned “innovation exemption” for tokenized versions of U.S. stocks, citing concerns from market participants.
Citing people close to the matter, Bloomberg reported that a draft framework, poised for release as early as this week, now faces delays as the agency reviews feedback.
SEC Delays Plan To Allow Crypto Versions of US Stocks
This exemption aimed to let crypto firms and DeFi platforms trade blockchain-based representations of stocks like Apple or Tesla.
It promised 24/7 trading, faster settlement, and easier fractional ownership while keeping tokens classified as securities.
Stock exchange officials and industry players reportedly raised alarms over potential liquidity fragmentation.
Critics worry parallel crypto markets could split trading volume from traditional exchanges, harming price discovery and efficiency.
Investor protection remains a core issue, especially for third-party tokens issued without company consent, which may lack full voting or dividend rights.
Market Context and Momentum
Tokenized real-world assets (RWAs) have surged to over $34 billion, up 1,600% in two years, with tokenized equities alone exceeding $1 billion in market value.
Ethereum leads platforms, followed by Solana. BlackRock’s BUIDL fund and similar products demonstrate strong institutional interest in on-chain assets.
Under SEC Chair Paul Atkins, the agency had consulted hundreds of participants to balance innovation with safeguards. The delay reflects caution even in a more crypto-friendly regulatory environment.
No new timeline has been announced, but the framework remains under active review. A refined version could still advance later this year, potentially reshaping U.S. equity trading.
This pause highlights the tension between ongoing crypto innovation and established market stability, key dynamics for anyone exposed to equities or digital assets.
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