# SEC Allows Blockchain Stock Trading

> SEC creates five-year exemption for tokenized stocks to trade on public blockchains.
- Title: SEC Allows Blockchain Stock Trading · Kiplinger | Shortify
- Summary: SEC creates five-year exemption for tokenized stocks to trade on public blockchains. SEC's innovation exemption lets tokenized stocks trade on blockchains…
- Keywords: sec, tokenized stocks, blockchain trading, innovation exemption, federal regulators, public equities, automated market makers, liquidity providers, broker-dealer registration, Allows, Blockchain, Stock
- Source: Kiplinger — https://kiplinger.com/investing/cryptocurrency/sec-paves-the-way-for-blockchain-trading
- Published: 2026-10-13T10:54:26+00:00
- Read time: 1 min
- Topics: sec, tokenized stocks, blockchain trading, innovation exemption, federal regulators, public equities, automated market makers, liquidity providers, broker-dealer registration
## 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.
## Key takeaway

SEC's innovation exemption lets tokenized stocks trade on blockchains with liquidity providers exempt from broker-dealer registration.