Home SEC Prepares Path For 24/7 Trading Of Tokenized US Stocks

SEC Prepares Path For 24/7 Trading Of Tokenized US Stocks

Share
SEC Prepares Path For 24/7 Trading Of Tokenized US Stocks
News
Share

The US Securities and Exchange Commission (SEC) is preparing an “innovation exemption” that could create a regulatory path for 24/7 trading of tokenized US stocks on blockchain networks. The plan, backed by SEC Chair Paul Atkins, could allow qualified platforms to offer digital versions of US equities under tailored regulatory requirements. The exemption has not yet taken effect, and the SEC recently postponed a meeting linked to its wider crypto plans.

If approved, the framework could bring one of blockchain’s biggest advantages, continuous trading, into the traditional stock market. Unlike conventional exchanges, blockchain networks can operate around the clock. Tokenized securities could therefore potentially be traded at night, on weekends and even during public holidays.

The move is part of a wider push to bring more of the US financial system on-chain. Traditional exchanges, clearing organisations and crypto companies are increasingly exploring tokenization as a way to make financial assets easier to transfer and settle.

Tokenized stocks would still be securities. Putting ownership records on a blockchain would not remove them from federal securities rules. This means the SEC will still have to consider issues such as investor protection, custody, market surveillance and settlement.

The structure of a tokenized stock will also matter. SEC discussions have distinguished between tokens issued or supported directly by the company whose shares they represent and tokens created by third parties. The difference can affect the rights investors receive and how the products are regulated.

The proposed exemption is not the first move towards tokenized US securities. The SEC has already provided no-action relief for a DTCC pilot involving selected US equities, exchange-traded funds and Treasury securities. Nasdaq has also been developing infrastructure for tokenized securities.

The attraction is not only longer trading hours. Blockchain-based systems could also allow faster settlement and reduce some of the steps involved in transferring securities. This could make markets more flexible and potentially lower costs over time.

However, moving stocks onto blockchain does not automatically solve every problem. Regulators still need to determine how tokenized assets would interact with existing clearing and settlement systems. They also need safeguards against fraud, market manipulation and operational failures.

The SEC’s work comes as the wider US market structure is also being debated. Industry participants are exploring whether blockchain-based trading systems could operate alongside traditional order books rather than simply replacing them.

For investors, the idea of buying and selling a tokenized version of a US stock at any time may sound like a simple change. In practice, it would represent a major shift in how financial markets operate. Traditional stock exchanges have fixed hours because their systems and infrastructure were designed around those limits.

Blockchain technology offers a different model, but regulation will determine how much of that model can actually be used. The SEC has not granted blanket approval for 24/7 tokenized stock trading, and the proposed innovation exemption is still under development.

Even so, the initiative shows that tokenization is moving beyond an experiment in the crypto sector. US regulators and financial institutions are now seriously considering how blockchain could become part of mainstream market infrastructure.

 

 

 

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

Share
Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

Leave a comment

Leave a Reply

Latest News

South Korea Moves To Block Polymarket Over Gambling Concerns
News

South Korea Moves To Block Polymarket Over Gambling Concerns

The biggest decentralized prediction market in the world, Polymarket, has been classified as an unlawful gambling operator by South Korea’s media authority,...

Ripple Partners With Jeonbuk Bank To Enable Real-time Cross-border Payments
News

Ripple Partners With Jeonbuk Bank To Enable Real-time Cross-border Payments

In an effort to modernize cross-border payments, Ripple has teamed up with Jeonbuk Bank in South Korea. The regional bank is the...

BitMart Founder Rejects Audit Calls As Users Report Blocked Funds
News

BitMart Founder Rejects Audit Calls As Users Report Blocked Funds

BitMart founder Sheldon Lee has rejected calls for an independent audit of the cryptocurrency exchange as users report being unable to withdraw...

CFTC Seeks Public Input On AI Compute Futures As CME Eyes October Launch
News

CFTC Seeks Public Input On AI Compute Futures As CME Eyes October Launch

The US Commodity Futures Trading Commission (CFTC) is preparing to seek public comments on futures contracts linked to computing capacity, as CME...

Related Articles

How Memecoins DOGE, SHIB, CASHCAT Are Reshaping Crypto

A few years ago, memecoins used to be the joke corner of...

Best Memecoin Launchpads Of 2026

Memecoins have been a point of attraction for crypto investors since their...

Best AI Crypto Projects Of 2026

The Artificial Intelligence (AI) sector is attracting very significant venture capital investments...

This Is How Indians Can Invest In Global Assets In 2026

Introduction Can Indians invest in global assets, too? The answer is yes....