SEC’s New Rule: Tokenized Stocks to Revolutionize US Equity Markets in 2026

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Report: Tokenized US Stocks Get New Regulatory Framework as SEC Prepares Exemption Release

Sources say the U.S. Securities and Exchange Commission (SEC) is likely to announce a new rule this week that would allow for the trading of tokenized stocks, according to a Bloomberg report.

  • Key Takeaways:

  • The SEC, under Chair Paul Atkins, plans to release a tokenized stock innovation exemption as soon as May 18, 2026.
  • The framework could open U.S. equity markets to platforms like Coinbase without full broker-dealer registrations.
  • The exemption follows Nasdaq and NYSE tokenized trading approvals in March and April 2026, signaling accelerating onchain adoption.

SEC Innovation Exemption Signals Major Shift for Onchain U.S. Equity Trading in 2026

The exemption creates a new framework for trading tokens that represent ownership or exposure to publicly traded companies. People familiar with the matter told Bloomberg the move is imminent, placing it among the most significant regulatory actions taken under SEC Chair Paul Atkins.

The Trump administration has pushed steadily to integrate blockchain technology into traditional securities markets since early 2025. The SEC approved Nasdaq’s rules for tokenized equities in March 2026, followed by a similar approval for the New York Stock Exchange (NYSE) in April 2026.

Both the Nasdaq and NYSE are now letting people trade digital versions of some stocks and ETFs alongside regular shares, as part of a test program run by the Depository Trust Company. However, a new exemption takes a different path. While the exchanges’ approvals limited digital trading to their existing systems, this exemption aims to allow for wider trading directly on blockchain networks.

It is designed to allow crypto-native platforms to offer tokenized stocks under lighter regulatory requirements during an experimental period. The SEC has discussed the exemption since mid-2025 as part of what Atkins called “Project Crypto.” Industry participants submitted comments throughout that process, including pushback from traditional exchanges that warned of diluted investor protections and unfair competition.

The proposed rules could allow platforms to offer digital versions of stocks – called tokenized stocks – without needing to become fully registered as traditional stockbrokers or exchanges, under certain conditions. This exemption would come with safeguards like limits on how much people can invest, requirements to clearly explain the risks, and restrictions highlighting that this offering is temporary or subject to change.

In January 2026, the SEC explained that simply turning a traditional investment into a digital token doesn’t change how the government regulates it. Existing federal securities laws still apply, focusing on the actual nature of the investment – so tokenized stocks follow the same rules as regular stocks.

The practical benefits of tokenized stock trading include faster settlement times, fractional ownership, reduced transaction costs, and the ability to trade around the clock. Those features have drawn interest from decentralized finance platforms and from investors seeking broader access to U.S. equity markets.

Entities such as Coinbase could benefit if the exemption allows crypto platforms to offer compliant tokenized stock trading without full registrations. Decentralized finance ( DeFi) protocols seeking to list tokenized equities onchain would also fall within the exemption’s apparent scope.

Throughout the development of these new rules, traditional banks and financial exchanges have expressed concerns. They believe that allowing a ‘sandbox’ environment – a space for testing new technologies – could create unfair competition and reduce important protections related to keeping assets safe, preventing money laundering, and maintaining a unified market.

I’m still waiting for the SEC to post the details of this new exemption on their website, sec.gov. Once it’s official, I expect to find out exactly who qualifies, what it covers, and any specific requirements. This seems to be part of a larger push by the current administration to update how financial markets work, with the SEC and CFTC working together, clarifying how digital assets are categorized, and exploring ways to modernize settlement processes using blockchain technology.

Atkins has established itself as a leader in promoting new financial technologies, and the recent exemption for tokenized stocks is the most significant move yet towards enabling large-scale, legally compliant blockchain trading of securities in the U.S.

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2026-05-19 02:28