SEC to Unveil Plan for Tokenized Stocks, Reshaping US Markets

The Trump administration is poised to roll out a plan for trading digital versions of securities that could reshape the landscape of the American stock market as it continues to loosen the rules for free-wheeling crypto markets. The Securities and Exchange Commission (SEC) is expected to release its so-called innovation exemption for tokenized stocks as soon as this week, creating a new framework for betting on the fortunes of publicly traded companies, according to people familiar with the matter. In a surprise move, the SEC is leaning toward a decision to allow the trading of tokens that do not have the full backing of traditional securities, potentially opening the door for tokenized stocks to trade on crypto exchanges. This development marks a significant shift in regulatory stance, as the SEC previously cracked down on similar products. The move could democratize access to stock trading and increase liquidity, but also raises concerns about investor protection and market stability. The full details of the exemption are expected to be published soon, and industry participants are closely watching for the final rules.