The U.S. Securities and Exchange Commission (SEC) is preparing a new framework that could allow trading of tokenized or digital versions of traditional stocks on crypto platforms, according to a Bloomberg News report.
The SEC has reportedly approved crypto-based tokenized stock trading.
This could be a huge step toward merging traditional finance with blockchain markets.
MASSIVE. 🚀 pic.twitter.com/g6UCKIGIDs
— Aman 👻 (@Im_Aman2) May 19, 2026
US regulator moves toward “innovation exemption” for digital securities
The proposal is expected to include an “innovation exemption” that would make it easier for tokenized stocks to be listed and traded under a clearer regulatory structure. The move shows a shift in U.S. policy toward integrating blockchain-based assets into traditional financial markets.
If approved, the framework could allow shares of companies to be represented as digital tokens and traded in crypto markets, creating a parallel system to traditional stock exchanges.
Tokenized stocks may trade without full shareholder rights
According to the report, the SEC is considering allowing tokenized versions of stocks that may not require approval from the underlying public companies. These tokens could track stock prices but not fully represent legal ownership.
In many cases, token holders may not receive standard shareholder rights such as voting power or direct dividends. Instead, they would hold digital representations linked to the value of the underlying asset.
The tokens could also be traded on decentralized platforms, opening access beyond traditional brokerage systems while remaining within a regulated framework.
Can the framework reshape how equities are accessed and traded?
The proposed changes bring a wider push by U.S. regulators to modernize financial markets while managing risk in the crypto sector. By creating a legal pathway for tokenized equities, the SEC could open the door for stock trading on blockchain-based platforms.
However, key questions remain around investor protections, company consent, and how much control traditional exchanges will retain. The framework could also reshape liquidity flows if tokenized stocks begin to attract retail and institutional traders on crypto platforms. The final structure of the policy will determine whether tokenized equities become a niche product or a major extension of global stock markets.
Meanwhile, SEC may be on the verge of a major shift toward blockchain-based finance, with Chair Paul Atkins hinting that a long-anticipated “innovation exemption” for tokenized securities could roll out within weeks.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytical tools”
