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SEC Grants Five-Year Exemption for Tokenized Stock Trading

By Markets Desk · 2026-09-18 · 1 min read
A glowing digital token hovers above a classical bank building.
Illustration: Tradingbird

The SEC has approved a five-year exemption allowing crypto platforms to trade tokenized equities under relaxed regulations.

The US Securities and Exchange Commission granted a five-year exemption to crypto platforms. This exemption allows them to trade tokenized equities without following standard exchange rules. Traditional venues like Nasdaq remain subject to stricter oversight. The move enables 24/7 trading and immediate settlement. Fractional ownership of stocks becomes possible on blockchain networks. Issuers do not need to approve these specific token structures.

Regulatory shift targets trading efficiency

Tokenized stocks represent the value of underlying shares. Investors buy digital tokens on a blockchain instead of listed papers. The SEC exemption removes several compliance burdens for these platforms. Transaction finality is now immediate for these assets. Trading hours extend beyond standard market schedules. These features align with existing crypto market practices. The rule treats tokenized equities as a regulatory test case.

Major platforms gain competitive advantage

Companies like Robinhood and Coinbase stand to benefit directly. They can offer stock exposure through their existing crypto interfaces. The exemption streamlines their trading processes. This reduces operational friction for digital asset exchanges. The sector anticipates increased user adoption. Trading volume may shift toward these platforms. The change supports the integration of traditional equities into crypto ecosystems.

Political alignment supports sector growth

The decision aligns with the goals of US President Donald Trump. He advocated for lighter regulation in the crypto industry. This regulatory test aims to move stock trading off traditional rails. It tests the feasibility of blockchain-based equity markets. Handelsblatt Finanzen reports on the structural shift in market access. The exemption removes barriers for digital asset issuers. It signals a broader acceptance of crypto infrastructure for equities.

Based on reporting by Handelsblatt Finanzen, compiled by the Tradingbird desk.

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