#EquityTrading

SEC Mulls Tokenized Stocks as Crypto Firms Eye Blockchain Equity Trading

The U.S. Securities and Exchange Commission (SEC) is currently evaluating the regulatory framework for tokenized stocks as various cryptocurrency firms express increasing interest in blockchain-based equity trading. This development signals a potential shift in how traditional financial assets are integrated into decentralized ledger technology, moving beyond simple digital representations toward fully compliant on-chain trading. Industry participants are actively engaging with regulators to determine how existing securities laws apply to tokenized equity, which promises to enhance settlement speeds and market transparency. By exploring these frameworks, the SEC aims to balance innovation with investor protection, addressing concerns regarding custody, clearing, and settlement processes. The move is significant for the RWA market as it bridges the gap between legacy stock exchanges and blockchain infrastructure, potentially unlocking liquidity for global investors. If successful, this regulatory clarity could pave the way for major financial institutions to tokenize traditional equities on public or private blockchains. Consequently, the integration of tokenized stocks represents a critical evolution in the maturation of the RWA sector, moving it closer to mainstream institutional adoption.

moomoo.com·Jun 18