SEC Opens Route for Tokenized U.S. Stocks on Public Blockchains

The SEC has created a potential route for qualifying venues to offer tokenized versions of U.S. stocks on public blockchains without registering as exchanges, according to Decrypt. The framework, known as the “innovation exemption,” could allow eligible platforms to support blockchain-based representations of shares while avoiding exchange registration requirements. However, the exemption does not cover synthetic assets that merely track stock prices. Companies would also retain the ability to prevent their shares from being tokenized. The development follows the stalled progress of the Clarity Act, as described by Decrypt, and establishes a limited framework rather than a blanket approval for all tokenized-stock platforms or products.