SEC may introduce innovation exemption for 24/7 tokenized stock trading

The U.S. Securities and Exchange Commission (SEC) is reportedly prepared to introduce an “innovation exemption” as early as Friday. This regulatory framework aims to facilitate the 24/7 on-chain trading of tokenized stocks.

Under this proposed path, shares of major companies such as Apple, Tesla, and Nvidia could be converted into blockchain tokens. This would allow for continuous trading on decentralized platforms, fractional share ownership, and near-instant settlement. However, these tokens would not grant traditional shareholder rights, such as voting power or dividends.

Led by SEC Chair Paul Atkins, this move aligns with broader efforts to ease cryptocurrency restrictions. The current market for tokenized stocks has already surpassed $1.4 billion. If approved, the exemption will initiate a legislative process involving public comment and further voting.