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SEC tokenized stock exemption to let equities move onto crypto rails
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A planned SEC exemption for tokenized stocks could let equities trade through crypto-native infrastructure, testing whether stablecoins, AMMs, and programmable settlement can enter US market plumbing.
Key facts
- DefiLlama data puts the on-chain RWA market at close to $30 billion, which represents 0.02% of global equity value, against SIFMA's 2024 global equity market capitalization of $126.7 trillion
- US equities already moved from T+2 to T+1 settlement in 2024, and the SEC framed that move as making market plumbing more resilient by reducing time, credit exposure, and liquidity risk
- NYSE-parent ICE is separately developing a tokenized securities platform targeting 24/7 operations, instant settlement, dollar-sized orders, and stablecoin-based funding, pending regulatory approval
- Kraken's xStocks platform already offers 100 fully backed tokenized US stocks and ETFs outside the US market, and Robinhood has launched EU stock tokens while building a layer-2 blockchain
Summary
The SEC is expected to release an innovation exemption for tokenized stocks as soon as this week. SEC Chair Paul Atkins and Commissioner Hester Peirce had already sketched the plan in February, describing a temporary, limited framework with volume caps, white-listed buyers and sellers, automated market makers, and temporary relief while the SEC develops longer-term rules. Atkins confirmed in April that the agency was “on the cusp” of releasing a cabined framework for compliant on-chain trading of tokenized securities. Bloomberg Law reported the move on May 18, which represents the clearest crypto-adjacent securities policy signal in years, with implications that run well beyond token prices.