SEC Prepares Tokenized Stock Framework as Onchain Equities Market Reaches $1.43B
The U.S. Securities and Exchange Commission is preparing a regulatory framework that could allow tokenized versions of publicly listed stocks to trade on blockchain-based platforms, a step that would further merge traditional capital markets with crypto infrastructure.
Bloomberg, citing people familiar with the matter, reported the SEC may roll out a proposed "innovation exemption" as soon as this week. The exemption would create a route for digital representations of securities to trade outside conventional stock exchanges, potentially on crypto-native venues.
The effort fits within the Trump administration's broader agenda to loosen constraints on digital assets and encourage the buildout of crypto-focused financial infrastructure in the U.S.
Under the reported proposal, third-party firms could issue blockchain-based tokens pegged to the value of publicly traded stocks without needing approval from, or involvement by, the underlying companies. These tokens would likely trade on decentralized crypto platforms. The instruments may not carry the same rights as ordinary shares, including voting or dividend eligibility, and would instead primarily provide price exposure to listed equities.
The shift would mark a notable change from the SEC's traditionally cautious approach to crypto-linked securities products and reflects rising momentum behind tokenization. Data from RWA.xyz show the value of tokenized stocks has increased nearly 30% over the past month to $1.43 billion across more than 2,200 assets. Monthly transfer volume has reached $3.10 billion, and the holder count has grown to about 267,710.
Ondo leads the segment with $888 million in tokenized equity value, close to 60% of the market. Rival platform xStocks follows with around $394 million.
Wall Street firms are also positioning for wider adoption. The Depository Trust & Clearing Corporation said it plans to support limited production trades of tokenized securities starting in July 2026, with broader rollout expected later that year. Nasdaq has disclosed plans to develop an equity token structure, and the New York Stock Exchange is building systems aimed at onchain settlement and tokenized trading infrastructure.
Advocates say tokenized securities could improve market efficiency through continuous trading, faster settlement, and broader global access. Critics point to unresolved risks around liquidity fragmentation, investor protections, and uncertainty over shareholder rights.
If adopted, the SEC's proposed exemption would be a major signal that U.S. regulators are prepared to bring blockchain-based trading deeper into mainstream capital markets rather than leaving it on the industry's fringe.
