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SEC Said to Be Drafting Plan to Allow Tokenized Stocks on Approved Crypto Exchanges

The early-stage effort signals a pivot to direct industry engagement under existing securities requirements.

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Hester Peirce testifies to the Senate Banking, Housing and Urban Affairs Committee on her nomination to be a member of the Securities and Exchange Commission on Capitol Hill in Washington, U.S., October 24, 2017. REUTERS/Joshua Roberts
Photo: Andrew Harrer
Sec willing to engage with tokenized asset issuers, sec’s hester peirce says

Overview

  • The Information reports the SEC is developing a framework for blockchain-registered versions of listed equities to trade on regulated crypto platforms, with no formal timeline or rule yet.
  • Commissioner Hester Peirce invited firms to consult the agency on tokenization and stressed that tokenized instruments would still be treated as securities.
  • Nasdaq has filed for a rule change to list tokenized securities, with the SEC’s public comment period ending October 14, and Coinbase, Robinhood, and Kraken are pursuing or testing related offerings.
  • Traditional finance voices are urging safeguards, including a Citadel Securities letter warning against regulatory arbitrage and a World Federation of Exchanges call for tighter oversight and shareholder-rights protections.
  • Industry trackers put tokenized assets at roughly $31 billion with about $714 million in stocks, and research estimates suggest the market could top $1.3 trillion if 1% of global equities migrate on-chain.