#SEC

185 articles tagged #SEC — curated RWA tokenization coverage.

#TokenizedStocks #RWA #Regulation #Tokenization #TokenizedSecurities #Blockchain #Securitize #CFTC #TokenizedEquities #CLARITYAct

Infrastructure

What Happens to Your Tokenized Asset If the Issuer Goes Bankrupt?

The legal structure underlying a tokenized asset determines investor protection in the event of an issuer's bankruptcy. While blockchain technology enables rapid settlement and 24/7 trading, it does not inherently shield assets from the insolvency of the entity that issued the token. The SEC distinguishes between issuer-sponsored tokens, where the blockchain record may serve as an official ownership system, and third-party tokens that often represent mere contractual claims. In regulated fund structures, underlying assets are typically held by independent custodians, separating them from the issuer's corporate property. Conversely, if a token functions as an unsecured obligation of a fintech firm, investors may be relegated to the status of general creditors during bankruptcy proceedings. This distinction is critical because the economic value of an RWA token relies on the legal arrangement connecting the digital record to the physical asset. Ultimately, tokenization adds complexity by involving multiple entities, including tokenizers, SPVs, and custodians, which necessitates a clear understanding of custody terms and asset segregation. Investors must recognize that blockchain efficiency does not replace the need for traditional financial safeguards and legal separation of assets.

#RWA #Tokenization #SEC

coinpaper.com·Sep 30, 20267.5

Infrastructure

Tokenised Equity Has Rules Now, and Every Rule Tests the Share Register

The SEC's 2026 regulatory framework, including the 17 September Innovation Exemption, establishes that tokenized shares must provide identical rights to traditional equity, specifically regarding dividends, voting, and liquidation. This mandate forces tokenized equity platforms to ensure their on-chain records reconcile perfectly with the issuer's master securityholder file. Recent failures, such as the cancellation of SpaceX pre-IPO token offerings by Binance, Bybit, and Bitget, highlighted that the primary challenge is not technical minting but securing actual stock ownership. The SEC now requires Tokenized Securities Venues (TSVs) to verify that tokenized assets mirror traditional NMS stock privileges. Furthermore, the SEC's guidance emphasizes the necessity of robust cryptographic standards, noting that signature schemes like those used on Ethereum and Solana face long-term quantum-vulnerability risks. As of 30 September 2026, RWA.xyz reports 7,691 tokenized stocks valued at $3.14 billion, a small fraction of the $114 trillion in assets held by the DTC. Companies like Bullish and Securitize are already adopting issuer-sponsored models to ensure their tokenized equity remains legally tethered to official capital tables.

#SEC #DTCC #TokenizedEquity

livetradingnews.com·Sep 30, 20269.0

Infrastructure

Wall Street Tokenization Explained: Will Blockchain Replace Today's Stock Trading Stack?

The U.S. Securities and Exchange Commission issued an order on September 17 allowing blockchain-based venues to trade tokenized versions of listed U.S. stocks without registering as traditional exchanges. This regulatory relief, which expires in five years, mandates that each token must retain the same rights as the underlying traditional share while imposing caps on trading volume and symbols. Industry experts Nick Cherney of Janus Henderson and Gabor Gurbacs of Openassets suggest this move could eventually replace significant portions of Wall Street's legacy trading infrastructure. By streamlining the current process, which often involves up to nine intermediaries, tokenization aims to reduce costs and improve settlement efficiency. Despite the potential for innovation, experts note that the current user experience for investors will likely remain largely unchanged in the near term. While Janus Henderson has seen institutional interest in offshore tokenized funds reaching up to $1 billion, this remains a fraction of the $24 trillion global ETF market. Ultimately, the transition is viewed as an inevitability that will likely unfold in stages as the industry tests the limits of this new regulatory framework.

#TokenizedEquities #SEC #BlockchainInfrastructure

BeInCrypto·Sep 30, 20268.5

Stocks

BTCS Prepares DeFi Business To Provide Liquidity For Tokenized Stocks

Nasdaq-listed BTCS has announced that its Imperium unit has completed the necessary compliance preparations to act as a liquidity provider for tokenized stocks. The company is positioning itself to utilize the SEC’s Covered Firm exemption, which provides conditional temporary relief from traditional dealer registration requirements for firms operating within automated market maker pools. While BTCS has submitted the required notices and disclosures to the SEC, the firm explicitly stated that it has not yet commenced any tokenized equity trading. This strategic move aims to bridge the gap between traditional market-making functions and blockchain-based securities venues. By preparing for this regulatory framework, BTCS intends to extend its existing DeFi liquidity operations into the regulated securities market. The initiative highlights the growing institutional interest in adapting traditional market structures to decentralized infrastructure. Success for this business line remains contingent upon the launch of operational, compliant tokenized securities venues that meet the SEC's specific criteria.

#SEC #TokenizedStocks #DeFi

tradingview.com·Sep 29, 20267.0

Infrastructure

Leading Market Infrastructure Firms Form Coalition to Advance Issuer-sponsored Tokenized Securities

Bullish and Equiniti have launched the Issuer Sponsored Token Coalition to establish technical and operational standards for tokenized public securities. Founding members include major market infrastructure firms such as Alpaca, Apex Fintech Solutions, and DriveWealth. The initiative aims to ensure that tokenized equities maintain a direct link to the issuer's authoritative shareholder register, preserving essential rights like voting and corporate-action entitlements. This development follows the U.S. Securities and Exchange Commission's September 17 Innovation Exemption, which permits limited onchain trading of U.S.-listed equities for a five-year period. By focusing on interoperability between traditional clearing systems and blockchain networks, the coalition seeks to bridge the gap between legacy capital markets and digital assets. The group intends to address regulatory, commercial, and operational requirements to foster a scalable, transparent ecosystem for tokenized shares. This collaborative effort represents a significant step toward institutionalizing onchain equity markets while maintaining the investor protections inherent in traditional finance.

#TokenizedEquities #SEC #Infrastructure

moomoo.com·Sep 29, 20268.5

Infrastructure

SEC and CFTC are rushing to write crypto rules after the Clarity Act stalled in the Senate

Following the failure of the Digital Asset Market Clarity Act in the U.S. Senate, the SEC and CFTC have initiated independent regulatory actions to address the digital asset landscape. The Senate vote failed to reach the 60-vote threshold, with a 50-49 split driven by concerns over ethics provisions regarding official conduct. In response to the legislative impasse, the SEC issued an order establishing a temporary pathway for trading specific tokenized stocks, signaling a potential shift toward 24/7 financial markets. Simultaneously, the CFTC submitted a rulemaking proposal to the White House, currently under review by the Office of Management and Budget. Industry leaders, including Coinbase CEO Brian Armstrong and MoonPay Institutional CEO Caroline Pham, emphasized that agency-level guidance is essential to reduce uncertainty for traditional financial institutions. This regulatory pivot follows the launch of the 'Project Crypto' initiative in July 2025, which aims to align SEC and CFTC oversight. These developments are critical for the RWA market as they represent a transition from legislative gridlock to administrative rulemaking, which could provide the necessary framework for broader institutional adoption of tokenized assets.

#CFTC #SEC #TokenizedStocks

qz.com·Sep 27, 20268.5

Stocks

Tokenized stocks just did $20.9 billion in DEX trading in 30 days

Tokenized stocks, including on-chain versions of Apple, Tesla, and Nvidia, recorded $20.9 billion in trading volume across decentralized exchanges over a 30-day period. Uniswap V4 and V3 pools facilitated over 60% of this activity, signaling a transition from pilot programs to a functional market. This surge follows the SEC's September 17 Innovation Exemption, which provides a legal framework for permissioned automated market makers to trade rights-bearing tokenized NMS-listed stocks. Robinhood Chain, launched in July 2026, emerged as a significant venue, processing $9.7 billion in volume within the same window and reaching nearly $1 billion in total value locked. Major issuers like Ondo, bStocks, xStocks, and Securitize currently hold over $2.3 billion in distributed stock token value. While this volume remains small compared to the New York Stock Exchange, it demonstrates a shift from institutional interest to active retail and DeFi-native participation. The integration of tokenized equities into collateral products, such as Ethena Labs' USDe stablecoin, further highlights the expanding utility of these assets. This milestone marks the first time that RWA tokenization has produced sustained, high-volume market data rather than just theoretical proof-of-concept announcements.

#RWA #SEC #TokenizedStocks

startupfortune.com·Sep 27, 20268.5

Infrastructure

Why your tokenized stock could stop trading for three months

The U.S. Securities and Exchange Commission (SEC) has introduced a regulatory framework for Tokenized Securities Venues (TSVs) that includes strict volume-based trading limits for tokenized stocks. Under this five-year experimental program, exchanges must adhere to specific thresholds based on a percentage of the traditional stock's average daily trading volume, categorized into Tier 1 and Tier 2 assets. If a tokenized stock repeatedly exceeds these volume limits, the SEC mandates an immediate three-month trading suspension for that specific asset across the exchange and its affiliates. This measure is designed to mitigate systemic risks and prevent price divergence between tokenized pools and traditional markets while the regulator observes the impact of automated market makers. The framework requires that qualifying tokens preserve full economic and governance rights, such as voting and dividends, explicitly excluding synthetic exposure products. For investors, this highlights the critical importance of understanding redemption processes and liquidity risks, as trading pauses could restrict the ability to exit positions. Ultimately, the policy balances the potential for 24/7 blockchain-based trading with the necessity of maintaining market stability and investor protection.

#SEC #TokenizedStocks #Regulation

cryptoslate.com·Sep 27, 20268.0

Stocks

Backpack Aims to Bring 10,000 Tokenized Stocks to Solana Blockchain

Backpack CEO Armani Ferrante has announced an ambitious roadmap to expand the platform's tokenized stock offerings on the Solana blockchain from 200 to 10,000 symbols. The initiative aims to bridge traditional brokerage accounts with decentralized finance by allowing real shares to move seamlessly between systems via a single API. Launched in June, the Backpack platform currently supports U.S. equities and ETFs, utilizing New York’s Uniform Commercial Code Article 8 standards for compliance. While the company claims one-to-one convertibility, it notes that token holders experience different dividend reinvestment and corporate action processes compared to traditional brokerage clients. The expansion strategy reflects a broader industry push to democratize equity access through distributed ledger technology. However, the Securities and Exchange Commission has issued warnings regarding the varying rights associated with tokenized securities, emphasizing that entitlements depend on specific technical implementations. Backpack has not yet been publicly identified as an authorized platform under the SEC's recent five-year regulatory framework for tokenized stock trading. No specific timeline or priority list for the 10,000-symbol rollout has been provided by the company.

#Solana #SEC #TokenizedStocks

Blockonomi·Sep 27, 20267.5

Stocks

Tokenized Stocks Jump Fivefold in 2026 as U.S. Venues Prepare Launch

The global market for tokenized stocks has experienced significant growth in 2026, with assets under management surging nearly fivefold to $4.43 billion. According to a Binance Research report, tokenized equities now represent 13% of the total $34.18 billion real-world asset market, up from 4.9% at the start of the year. This expansion is bolstered by the U.S. Securities and Exchange Commission's new Innovation Exemption, which permits regulated tokenized securities venues to trade on-chain stocks. These venues must ensure tokenized instruments provide identical dividends and voting rights to underlying shares, moving away from synthetic price-tracking models. The SEC's five-year conditional framework requires clear operator identification and compliance standards, with the first platform expected to launch as early as the fourth quarter of 2026. Analysts suggest substantial long-term potential, projecting the market could reach between $61 billion and $987 billion by 2030. This shift marks a pivotal transition toward integrating traditional equity markets with blockchain-based liquidity and lending protocols.

#RWA #Blockchain #SEC

en.sedaily.com·Sep 27, 20269.5

Infrastructure

U.S. Agencies Take Separate Crypto Steps After CLARITY Act Vote Fails

Following the U.S. Senate's rejection of the CLARITY Act (H.R. 3633) on September 15, federal regulators have independently issued targeted guidance to address gaps in crypto market structure. The SEC introduced an Innovation Exemption on September 17, providing temporary relief for venues facilitating permissioned trading of tokenized NMS stocks. This exemption allows liquidity providers to operate without traditional exchange registration, provided they maintain shareholder rights and adhere to strict transparency requirements regarding transaction data. Simultaneously, the CFTC issued a no-action position for passive software providers offering access to regulated derivatives markets. The Federal Reserve followed on September 24 with proposals for payment stablecoin issuers, mandating one-to-one reserves in high-quality liquid assets like short-term Treasuries. These actions represent a shift toward regulatory pragmatism, allowing specific onchain activities to proceed under existing authorities while comprehensive legislative reform remains stalled. This fragmented approach provides immediate clarity for tokenized securities and stablecoin issuers, signaling a pathway for institutional participation in RWA markets despite the lack of a unified federal statute.

#Stablecoins #SEC #TokenizedStocks

tokenpost.com·Sep 26, 20269.0

Infrastructure

Tokenized securities, cats and dogs living together, mass hysteria

The New York Stock Exchange (NYSE) has signed a memorandum of understanding with Blockchain.com to explore the 24/7 trading of tokenized equities and ETFs via a proposed digital alternative trading system. This partnership aims to leverage NYSE’s digital infrastructure to provide global access to tokenized securities for Blockchain.com’s 44 million users. The initiative aligns with broader regulatory shifts, including the SEC’s new five-year innovation exemption for Tokenized Securities Venues (TSVs) to facilitate round-the-clock trading. Simultaneously, the CFTC is updating its frameworks to support mass tokenization, allowing for the use of tokenized collateral and blockchain-based recordkeeping. These developments represent a significant convergence of traditional Wall Street institutions and decentralized technology, aiming to enhance market liquidity and settlement efficiency. While the transition promises increased accessibility, regulators and market participants remain cautious regarding potential volatility and the operational challenges of extended trading hours. This move signals a major institutional push toward integrating blockchain technology into the core of the U.S. financial system.

#CFTC #SEC #TokenizedStocks

coingeek.com·Sep 25, 20269.0

Infrastructure

SEC’s Hester Peirce Backs Zero-Knowledge Proofs for Crypto KYC and Tokenized Stocks

SEC Commissioner Hester Peirce advocated for the integration of zero-knowledge proofs and attribute-based credentials to modernize KYC and AML compliance processes. Speaking at the SIFMA Digital Assets Conference, Peirce argued that current data collection practices create excessive privacy risks and suggested that cryptographic proofs could verify investor status without exposing sensitive personal information. This shift aims to reduce the burden of maintaining massive data repositories while maintaining regulatory integrity. Simultaneously, the SEC recently introduced an Innovation Exemption effective September 17, 2026, which permits the trading of tokenized stocks through permissioned automated market makers. This framework establishes specific volume caps for Tier 1 and Tier 2 stocks to facilitate domestic development of tokenized equity markets. While industry groups like SIFMA have expressed concerns regarding potential liquidity fragmentation and investor confusion, the SEC is actively soliciting public feedback via File No. 4-927. These developments represent a significant regulatory pivot toward balancing institutional compliance requirements with the privacy-preserving capabilities of blockchain technology. By fostering a domestic environment for tokenized securities, the SEC seeks to prevent the migration of these financial activities to overseas platforms.

#SEC #TokenizedStocks #DigitalIdentity

Blockonomi·Sep 25, 20268.0

Infrastructure

Wisdomtree Updates Sec Registration For Tokenized Fund Expansion

WisdomTree has submitted updated registration materials to the U.S. Securities and Exchange Commission (SEC) to advance its digital-fund strategy. This filing focuses on the legal and operational framework required to distribute tokenized fund interests, including those linked to physical assets and Treasury-style exposures. By integrating blockchain technology with traditional fund structures, WisdomTree aims to modernize ownership records, transfers, and settlement processes. This move aligns the firm with major institutional players like BlackRock and Franklin Templeton who are similarly building out regulatory plumbing for tokenized products. While the filing does not represent a final commercial launch or SEC approval, it underscores the firm's commitment to making tokenized distribution a standard component of its lineup. The initiative highlights the ongoing challenge of reconciling the programmable nature of public blockchains with the strict compliance requirements of registered investment funds. Ultimately, this development is significant because it demonstrates the methodical, long-term effort required to build durable legal wrappers for institutional-grade RWA products.

#RWA #SEC #InstitutionalFinance

bitcoinist.com·Sep 25, 20267.5

Infrastructure

Bullish, Alpaca and Apex Fintech form coalition to push issuer-backed tokenized stocks

Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth have launched the Issuer Sponsored Token Coalition to establish industry standards for tokenized securities. The group aims to bridge traditional market infrastructure with blockchain networks by ensuring tokens are directly linked to a company’s official shareholder register. This model prioritizes the preservation of legal rights, including voting, dividends, and participation in corporate actions, which are often absent in synthetic or derivative stock products. By focusing on issuer-sponsored tokenization, the coalition seeks to address concerns regarding the lack of direct ownership in current tokenized equity offerings. The initiative follows a recent U.S. Securities and Exchange Commission exemption that permits limited onchain trading of U.S.-listed equities under specific conditions. Alpaca plans to leverage its Instant Tokenization Network to enhance interoperability between traditional and onchain markets. This development is significant for the RWA market as it attempts to standardize the legal and technical framework required for institutional-grade equity tokenization.

#SEC #TokenizedStocks #Alpaca

coindesk.com·Sep 24, 20268.0

Infrastructure

Securitize Corp (SECZ) Soars to All-Time High Anew, Analysts ‘Highly Bullish’

Securitize Corp. (NYSE:SECZ) reached a new all-time high of $14.86 per share following positive analyst sentiment and recent regulatory developments. Cantor Fitzgerald initiated a buy rating with a $21.20 price target, highlighting the firm's leadership in tokenizing traditional equities. Rosenblatt also raised its price target to $13, citing the SEC's new Innovation Exemption as a critical catalyst for on-chain US equity trading. This regulatory relief allows platforms to issue tokenized representations of publicly traded stocks, provided they maintain shareholder rights and allow companies to object to tokenization. With $319 trillion in global traditional assets and only $39 billion currently on-chain, Securitize is positioned to capture significant market share. The firm currently manages $5 billion in tokenized assets across 23 public blockchains. This shift represents a major milestone for the RWA market as it moves toward integrating traditional equity infrastructure with blockchain rails.

#RWA #Securitize #TokenizedEquities

insidermonkey.com·Sep 24, 20268.0

Infrastructure

ARK Venture Fund Gets SEC Nod for Tokenized Fund Shares

The U.S. Securities and Exchange Commission has granted ARK Venture Fund approval to issue a tokenized class of shares, marking a significant regulatory milestone for secondary market trading of fund interests. Under the Sept. 21 order, these shares will be recorded on a distributed ledger and can be traded on alternative trading systems or via peer-to-peer transfers between approved wallets. To ensure compliance, the fund must conduct rigorous anti-money-laundering and know-your-customer checks on all participating wallets. The approval requires daily disclosure of the net asset value on the fund's website, while acknowledging that secondary market prices may deviate from this value. This development allows ARK Investment Management to move beyond its previous 2025 structure, which lacked provisions for secondary market liquidity. By enabling tokenized shares for an interval fund focused on disruptive innovation, the SEC is establishing a clearer pathway for the integration of blockchain technology into traditional investment vehicles. This move reflects a broader regulatory trend, as the commission simultaneously explores frameworks for tokenized NMS stocks and other digital securities venues.

#SEC #TokenizedFunds #DLT

cryptotimes.io·Sep 23, 20268.5

Stocks

Tokenized stocks must carry the same shareholder rights, OKX US CEO says

OKX US CEO Roshan Robert asserted that tokenized National Market System (NMS) stocks must fully preserve the rights and privileges of traditional shares, encompassing investor interest, dividends, voting rights, and claims on assets during liquidation. This declaration coincides with the U.S. Securities and Exchange Commission (SEC) initiating a five-year exemption on September 17, allowing specific venues to trade tokenized U.S. listed stocks via permissioned automated market makers and liquidity pools. The SEC's order, set to expire on September 17, 2031, explicitly mandates that tokenized stocks provide equivalent shareholder rights, thereby excluding products that offer only synthetic price exposure. Robert emphasized that this parity is crucial for investor protection and to prevent the fragmentation of traditional and tokenized markets into products with differing rights. The exemption also requires a 30-day written notice to issuers before trading unaffiliated tokenized stock, enabling companies to object, a process exemplified by AMC Entertainment's challenge to a Robinhood product. While this SEC test is temporary, the insights gained over this period will inform potential adjustments to Regulation NMS and determine the permanence of tokenized stock regulations, marking a pivotal phase for the evolution of regulated tokenized equity markets.

#SEC #TokenizedStocks #RegulationNMS

crypto.news·Sep 23, 20267.5

#SEC

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