The U.S. Securities and Exchange Commission (SEC) is preparing to roll out new regulations aimed at tokenized stocks, with a focus on creating an on-chain stock market without requiring legislative approval. This initiative comes as Congress has yet to take action on related proposals.
According to sources, the SEC plans to announce two significant initiatives in the near future. The first is a proposal for "Regulation Crypto," which would allow projects to raise funds through token sales without needing to undergo the full securities registration process. The second initiative is an "innovation exemption" specifically for tokenized stocks, which is expected to be detailed in an upcoming meeting.
This exemption would enable continuous trading of tokenized versions of popular stocks like Apple and Tesla on blockchain platforms, allowing for fractional ownership and rapid settlement times. While these tokens typically do not offer voting or dividend rights, some protocols are exploring ways to integrate these features, potentially easing regulatory burdens.
