SEC Advances Tokenized-Securities Exemption That Could Enable 24/7 Trading

The U.S. Securities and Exchange Commission has proposed a new exemption that could fundamentally alter the landscape for tokenized securities by allowing them to trade on a 24/7 basis. This regulatory shift targets the current limitations of traditional market hours, which often conflict with the continuous nature of blockchain-based settlement. By potentially exempting certain tokenized securities from specific registration requirements, the SEC aims to foster innovation while maintaining investor protections. This move is particularly significant for the RWA sector, as it addresses the friction between legacy financial infrastructure and the efficiency of distributed ledger technology. If finalized, the exemption would provide a clearer legal pathway for platforms to offer round-the-clock trading of tokenized assets. Industry participants view this as a critical step toward integrating real-world assets into the broader digital economy. The proposal reflects a growing recognition by regulators that tokenization requires a modernized framework to reach institutional scale.