The Trump administration is moving to open a regulatory path for tokenized versions of securities to trade on crypto platforms. The expected framework could widen how shares are traded outside traditional exchanges and adds to a broader U.S. push to clarify digital asset rules.
Highlights
- The U.S. SEC is expected to unveil an 'innovation exemption' enabling tokenized stock trading on crypto platforms as soon as this week.
- Under the proposed exemption, tokens representing public company shares could be traded on decentralized platforms without consent from the issuers or granting traditional shareholder rights.
- If implemented, the SEC's plan and related Senate legislation may create new regulatory channels for equity-linked crypto trading in the U.S. market.
Planned exemption for tokenized securities
As first reported by Bloomberg News, the U.S. Securities and Exchange Commission is expected to release an "innovation exemption" for tokenized stocks as soon as this week.The planned step signals the administration's effort to bring stock trading onto crypto platforms. Bloomberg News says the SEC is leaning toward allowing trading in tokens that do not have the backing or consent of the public companies whose shares they track.
Those tokens would trade on decentralized crypto platforms and may not include traditional shareholder rights such as voting power or dividends. The SEC does not immediately respond to Reuters' request for comment.
Regulatory implications for U.S. crypto markets
The proposal points to a potentially new regulatory channel for trading equity-linked instruments outside established exchanges. If adopted, it could reshape how digital asset platforms and market participants approach stock exposure in the U.S.The move also fits into a wider policy shift in Washington toward clearer crypto rules. Recently, the Republican-led Senate Banking Committee advanced legislation aimed at creating more defined U.S. regulations for cryptocurrencies.
Our earlier report on the Ohio cryptocurrency Ponzi scheme described how Rathnakishore Giri was sentenced to nine years in prison after prosecutors said investors lost more than $10 million. We noted that he promised guaranteed principal and high returns on Bitcoin-derivatives trading, but allegedly used new deposits to pay earlier participants and kept soliciting funds even after pleading guilty—highlighting the risks that persist in lightly regulated digital-asset activity.
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