SEC Policy Under Review for Tokenized Stocks and Market Innovation
- Reports
- 24
- Developments
- 9
- Repetition
- 83%
New informationRepeats or wire copies
What happened
The U.S. Securities and Exchange Commission is preparing a policy that could allow crypto companies to offer blockchain-based versions of publicly traded stocks. These tokenized stocks track conventional shares but trade on blockchain networks. The policy includes an 'innovation exemption' that would allow companies to test new digital asset business models without complying with all existing SEC disclosure and investor-protection requirements. Coinbase has indicated plans to launch tokenized stocks in the U.S. once regulations permit.
Why it matters
The potential introduction of tokenized stocks could reshape equity markets by enabling around-the-clock trading, faster settlement, and lower transaction costs. This market shift introduces a new competitive model, allowing crypto firms to challenge established brokerage operations.
Who's involved
- Member of the United States Securities and Exchange CommissionThe body responsible for overseeing U.S. securities markets and considering policy changes.
- CoinbaseAn American company planning to launch tokenized stocks in the U.S. market.
- Hester PeirceA prominent figure in the financial sector and current Commissioner of the SEC.
How it developed
Newest first. Tap a step to see who reported it.- The SEC granted a temporary exemption allowing tokenized securities venues to use Automated Market Makers for trading tokenized stocks.Sub-event
- Interactive Brokers and OKX are competing against traditional brokerages by offering tokenized stocks with fee discounts and different risk profiles.Sub-event
- Atkins' regulatory exemption allows crypto firms to test new models and compete with traditional brokerage giants.Sub-event
- Coinbase is preparing to launch tokenized stocks in the US market.Sub-event
SEC policy may permit crypto firms to offer tokenized stocks.1 source
Atkins' policy allows crypto firms to test new models, affecting traditional brokerages.1 source
- Coinbase and Better are developing crypto-backed mortgages, though US market access remains restricted by specific regulations.Sub-event
SEC policy could allow crypto companies to offer tokenized stocks.1 source
Show 1 earlier step
SEC is preparing policy regarding tokenized stocks and their impact on the brokerage industry.1 source
Keep exploring
The entities involved
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Charles Schwab
professor of agricultural and biosystems engineering
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Coinbase
American company that operates a cryptocurrency exchange platform
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Hester Peirce
American lawyer, current Commissioner of the United States Securities and Exchange Commission
- Experts, including Hester Peirce and Paul S. Atkins, weighed in on the SEC's rule-making process, supporting rule elimination and criticizing regulatory overreach.
- Hester Peirce's efforts to seek and influence SEC rules have been observed across various administrations, including Gensler's and Trump's.
Related events
- The SEC issued an order for tokenized stocks, while the Senate blocked the Clarity Act, amid ongoing industry debate.
- Bitwise launches portfolios using Coinbase tokenized stocks, which include Tesla, Nvidia, and Microsoft.
- Coinbase awaits clearer rules from the SEC as Chair Paul Atkins pushes innovation exemptions for tokenized assets, with Nasdaq building supporting platforms.
- Firms, including Morgan Stanley and Coinbase, discussed the benefits and costs of tokenization at SIFMA’s Digital Assets Conference.
- Coinbase utilizes its Base L2 network and competes with Robinhood for tokenized stock trading market share.
Coverage
Newest first; wire copies grouped- mondaq.com
- chinanationalnews.com
- tennesseedaily.com
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- newyorkstatesman.com
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