SEC · CLARITY Act · CoinDesk
Why this investment bank expects little demand for tokenized stocks despite SEC’s new trading rules
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The Securities and Exchange Commission (SEC) opened a new path for tokenized stock trading in the U.S. last week, adding momentum to a technology that has swept through financial markets over the past year.
Key facts
- Yet 99.9% of Figure’s notional trading took place through its traditional listed shares during the 24-hour period examined by TD
- TD found that 96% of Nvidia-related notional volume in a Binance snapshot came from perpetual futures, compared with 4% from spot products
- Third-party tokenizers must notify a company before trading its stock, giving the issuer 30 days to object
- The Securities and Exchange Commission (SEC) opened a new path for tokenized stock trading in the U.S. last week, adding momentum to a technology that has swept through financial markets
Summary
The SEC created a five-year framework for tokenized stock trading days after the CLARITY Act failed to advance. TD Cowen sees limited near-term adoption as U.S. investors already have easy access to stocks and issuers have shown little interest in tokenization. Perpetual futures remain the bigger draw for crypto-based stock exposure, with TD pointing to far higher trading volumes than tokenized spot products. The agency’s new Innovation Exemption creates a five-year framework for qualifying tokenized securities venues to operate automated market maker pools without registering as exchanges.