The US Securities and Exchange Commission (SEC) is reportedly preparing to roll out a new framework for trading tokenized stocks on decentralized crypto platforms.
Bloomberg quotes people familiar with the matter reports that the SEC is expected to release its so-called innovation exemption for tokenized stocks as early as this week.
The regulator is also likely to give the green light to trading in tokenized shares of listed companies that do not have the permission or backing of the issuer.
Tokenization of real-world assets involves creating blockchain-based versions of assets such as stocks and bonds, which can be traded 24 hours a day. The SEC categorizes tokenized securities as those that are tokenized by or on behalf of the issuers and those that are tokenized by third parties.
The “third party” tokens would essentially provide a new way to speculate on the price direction of stocks, but may not offer the same benefits as regular stocks, such as voting rights and dividends.
The report says that under the SEC’s proposal, platforms that cannot offer the benefits of regular shares would lose the right to list the tokens. However, agency officials are still working on the waiver and details could change before it is released.
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