SEC Advances Proposal too Enable Blockchain Trading of Stocks
WASHINGTON D.C. – The U.S. Securities and Exchange Commission (SEC) is developing a plan that could allow stocks to be traded on blockchain platforms, functioning similarly to cryptocurrency assets, according to a report published tuesday by The Information. The move signals a potential overhaul of traditional stock trading infrastructure and opens the door for increased innovation in financial markets.
The early-stage proposal would permit investors to buy and sell tokenized versions of equities through approved cryptocurrency platforms. This development arrives as major exchanges and brokerages are already positioning themselves to offer such services, and could dramatically reshape how stocks are bought, sold, and settled. The SEC’s consideration of this technology follows statements from Chair Paul Atkins, who previously characterized tokenization as an “innovation” the agency should foster.
Several companies are already making moves in this space. Robinhood and Kraken have begun offering tokenized stocks, while Coinbase is actively seeking approval to do the same. Nasdaq filed a rule change request last month to enable trading of tokenized stocks and exchange-traded products.
Nate Geraci, President of NovaDius Wealth Management, recently noted a meeting between the New York Stock Exchange and the SEC’s Crypto Task Force to discuss tokenized equities, highlighting the growing industry interest and engagement with regulators.
The SEC’s plan could potentially reduce settlement times, lower costs, and increase accessibility to stock ownership. the agency has not yet announced a timeline for implementation or further details of the proposal.
