US SEC to Permit Third‑Party Tokenized Stocks Without Issuer Approval

The U.S. Securities and Exchange Commission is expected to issue an "Innovation Exemption" within days that would allow third‑party tokens tracking listed company shares to be issued and traded on decentralized finance platforms without the consent of the underlying firms. The tokens, which could represent stocks such as Apple, Amazon or Nvidia, would be blockchain‑based digital assets offering 24‑hour trading but may not carry voting or dividend rights.

Regulators see the proposal as a test of how traditional securities protections apply to crypto‑based markets. Critics warn it could fragment markets and dilute price transparency, with former SEC official Brett Redfurn noting that "unlimited token proliferation could make it difficult for investors to know the true value of their holdings." Industry groups such as SIFMA have highlighted the need for standards on price integrity and AML/KYC compliance. Meanwhile, the NYSE and Nasdaq are evaluating their own tokenization platforms as the move could blur the line between conventional exchanges and decentralized trading.

Supporters argue tokenization can lower transaction costs, speed settlement and broaden investor access, positioning the United States at the forefront of a rapidly evolving digital asset landscape.