Kraken meets SEC to discuss tokenized trading and regulatory framework
Crypto exchange Kraken held a meeting on Monday with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss the future of tokenized trading systems and the legal framework surrounding tokenized assets.
Representatives from Payward, Inc., Kraken Securities LLC, and the law firm WilmerHale attended the meeting, reports Cointelegraph.
The agenda focused on compliance requirements, operational benefits, and investor protections as tokenized assets increasingly enter mainstream markets. The discussion comes amid growing calls from traditional exchange associations and regulators for stricter rules around tokenized stocks, which currently operate outside many conventional safeguards.
Tokenized stocks gain traction despite regulatory concerns
Kraken launched its tokenized stock trading service on May 22, allowing non-U.S. investors to trade U.S. equities 24/7. Similarly, Robinhood began offering tokenized U.S. stocks in the European Union on June 30. Last week, Kraken expanded its offering by adding support for the Tron blockchain, broadening accessibility and lowering transaction costs. While regulators remain cautious, advocates argue that tokenization provides greater accessibility, liquidity, and programmability compared to traditional markets.
According to RWA.xyz, tokenized stocks currently represent a $360 million market, down 11% in the past 30 days, but analysts believe this segment could scale rapidly as adoption grows globally.
Tokenization seen as trillion-dollar opportunity
Despite regulatory headwinds, analysts project a trillion-dollar market for tokenized equities. Binance Research estimates that if just 1% of the global equities market were tokenized, the sector’s market capitalization could surpass $1.3 trillion. A recent Kraken survey revealed that 65% of U.S. investors who own both equities and crypto expect crypto to outperform traditional stocks over the next decade.
Kraken’s Global Head of Consumer Business, Mark Greenberg, emphasized that tokenization should go beyond replicating Wall Street systems, instead enabling global accessibility and programmable financial products. As the SEC evaluates frameworks for tokenized assets, Kraken’s discussions could set the stage for new rules that balance innovation, investor protection, and compliance.
Recently we wrote that the U.S. Securities and Exchange Commission (SEC) once again postponed its decision on the proposed Cardano exchange-traded fund (ETF), setting October 26, 2025, as the new deadline.
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