From Kiplinger · · 1m 10s
SEC Allows Blockchain Stock Trading
SEC creates five-year exemption for tokenized stocks to trade on public blockchains.
In brief
SEC creates five-year exemption for tokenized stocks to trade on public blockchains. SEC's innovation exemption lets tokenized stocks trade on blockchains with liquidity providers exempt from broker-dealer registration. Originally reported by Kiplinger.
SEC Unveils Blockchain Trading Rule
Federal regulators propose five-year exemption for tokenized stocks to trade on public blockchains.
Tokenized Stocks Offer 24/7 Trading
Retail and institutional investors gain round-the-clock access to public stocks with instant settlement and self-custody options.
Tokenization Benefits Investors
Tokenized stocks allow earning interest, taking instant loans, and receiving dividends directly via blockchain.
Skeptic Concerns About Continuous Trading
Skeptics warn continuous trading creates pricing risks and lacks traditional market cooling-off periods.
Early Platform Price Distortions
Some tokenized stocks traded up to 300% above real stock prices due to fragmented liquidity.
SEC Requires Shareholder Rights
Tokenized shares must offer voting rights, dividend payouts, and liquidation claims like traditional stocks.
Trading Volume Caps for Pilot Phase
Tier 1 stocks like Nvidia can trade up to 312,500 tokenized shares per day with strict volume limits.
The short version
SEC's innovation exemption lets tokenized stocks trade on blockchains with liquidity providers exempt from broker-dealer registration.
