The White House is reviewing whether to repeal a decades-old rule aimed at ensuring investors receive the best available prices when executing stock trades, according to Bloomberg.

The U.S. Securities and Exchange Commission could introduce an "innovation exemption" tied to tokenized stocks as early as this week, Bloomberg reported.

The U.S. Securities and Exchange Commission is expected to unveil a new framework as soon as this week that could open the door to blockchain-based trading of digital versions of publicly listed stocks. The update is drawing attention to Ondo Finance, which has already rolled out more than 200 tokenized U.S. stocks and ETFs on-chain through Ondo Global Markets, positioning it as an early builder of an on-chain equities ecosystem in the U.S. Since the report surfaced, ONDO has gained 10%. Market participants say that if the proposed "innovation exemption" is implemented, Ondo Finance could emerge as a key platform for a compliant, real-world on-chain stock market in the United States.

Author: Shenchao TechFlow Bloomberg Law reported Monday that the U.S. Securities and Exchange Commission could publish its long-anticipated "Innovation Exemption" framework for tokenized stocks as soon as this week. The most consequential signal is tucked into a concurring view: tokenized versions of public equities may be allowed to trade even without the underlying company's approval. If that interpretation holds, stocks such as Tesla, Apple, and NVIDIA—so long as they remain listed on U.S. exchanges—could be tokenized and traded onchain as "tokenized TSLA" and similar products without prior notice or consultation. Issuers could publicly distance themselves, but such statements would not necessarily stop secondary trading. Why this matters: a flashback to July 2025 The contours of today's debate were previewed last July, when Robinhood unveiled "Stock Tokens" for EU users at Cannes, pitching 24/7 blockchain trading tied to more than 200 U.S. public companies. The rollout escalated when Robinhood also promoted token giveaways linked to OpenAI and SpaceX—two private companies—with a combined value of $1.5 million. OpenAI quickly rejected the association on X, stating that the "OpenAI tokens" were not equity, that OpenAI had no partnership or involvement, and that any transfer of OpenAI equity requires its approval—approval it said had not been granted. Robinhood responded that the tokens were pegged to an SPV holding OpenAI shares, effectively framing the product as a derivative. The Bank of Lithuania, Robinhood's main EU regulator, later requested clarification on the legality of the structure. At the heart of the dispute was a simple question: can a third party use a company's equity as the reference or collateral for tokenized products when the company explicitly objects? At the time, many viewed Robinhood as pushing boundaries. Eleven months later, the SEC appears poised to answer: yes—and under a formal framework. How the SEC is getting there SEC Chair Paul Atkins has been in the role for a year, and his policy direction has consistently pointed toward an onchain securities pilot. In an April 21 speech at the Economic Club of Washington, Atkins said the SEC planned an "Innovation Exemption"—a 12-to-36-month regulatory sandbox that would permit onchain trading of tokenized securities without full registration, in exchange for constraints such as volume caps, whitelist-based access, and periodic reporting. An earlier signal came in a legal memorandum submitted to the SEC's Crypto Task Force on January 22, describing three tokenization models for U.S. stocks: 1) Direct issuance: issuers record equity directly onchain, requiring issuer approval. 2) Custodial token model: a third-party custodian immobilizes existing shares and issues corresponding onchain tokens, without needing issuer consent because the original securities remain intact. 3) Synthetic model: tokens track stock prices via derivatives, with no required issuer approval and no direct linkage between token and underlying security. The SEC's emerging posture effectively validates the latter two approaches. That would put issuer-partnered players such as Galaxy and Superstate on the same regulatory footing as "permissionless" models associated with Robinhood. Regulatory arbitrageurs may welcome the shift; CFOs and corporate counsel at public companies may see it as a governance and market-structure headache. Winners and losers Likely beneficiaries include: - Onchain brokers and decentralized exchanges. If the exemption framework legitimizes non-consensual tokenization models, last year's OpenAI-related backlash becomes less of a compliance liability for similar products. - DeFi infrastructure. If tokenized U.S. stocks can trade through AMMs, it could pull a slice of Nasdaq-style liquidity closer to venues like Uniswap and Curve. - Early RWA-focused platforms. Projects such as Ondo, Backed, Securitize, and others have positioned for exactly this type of regulatory opening. - Global retail traders. The U.S. equity market could effectively move from 6.5 hours a day to 24/7 access. Potentially disadvantaged parties include: - Public companies. Tokenization without issuer consent can create an external "shadow market." If onchain pricing diverges from listed shares, or if token structures introduce confusion over governance rights or shareholder activism, the fallout is likely to land on investor relations and legal teams that have no direct control over the product. - Traditional broker-dealers and post-trade utilities. Tokenization implies a path that could reduce reliance on DTCC-style clearing and settlement. - The SEC's more conservative wing. Commissioner Hester Peirce has repeatedly emphasized that "tokenized securities are still securities." She supports tokenization but has warned against using it to bypass core investor protections. Allowing tokenized trading without issuer consent could become a major internal fault line. Open questions that will shape the outcome The core promise of tokenized stocks is what becomes possible once equities are onchain: collateral use, structured portfolios, tighter integration with stablecoin liquidity, and repeated wrapping across DeFi. Yet those advantages depend on design. If the exemption imposes tight whitelist restrictions, trading volume limits, and strict KYC thresholds, DeFi composability could be sharply reduced—creating an onchain stock market with meaningful constraints rather than a fully interoperable, global, 24/7 DeFi-native instrument. Key details to watch before the SEC publishes the final text: - Who qualifies for the whitelist: only accredited/qualified U.S. investors, or broader retail access? - How cross-border coordination will work. - Whether EU MiCA-regulated tokenized stocks could conflict with tokenized stocks issued under a U.S. innovation exemption. - If issuers sue, whether the exemption provides meaningful legal cover for third-party token issuers. - What happens after the 12–36 month sandbox: permanent approval, or a shutdown. For decades, a company's trading venue, hours, and market structure were largely shaped by issuers and exchanges. The SEC's move would shift part of the decision-making over "how a stock trades" away from the issuer. Last year, Robinhood was criticized in Europe for racing ahead of the rules. Now the SEC is rewriting the rules. Looking into 2026, this may be one of the most consequential financial-infrastructure shifts to monitor. New blockchains and DeFi TVL milestones may matter less than a regulatory path for the world's largest asset class to move onchain—with U.S. stocks at the center and with tokenization no longer fully controlled by the companies being tokenized. Tokenized stocks have been marketed for years, and real liquidity remains limited. Still, if the SEC removes the last major legal uncertainty, the sector may be worth reassessing. A trading paradigm Nasdaq built over 50 years could, in theory, be reworked onchain in a fraction of that time.

NEW: Kevin Warsh is scheduled to be sworn in on Friday as the next chair of the Federal Reserve, taking over from Jerome Powell.

Russia's State Duma is reviewing a supplemental bill tied to the Digital Currency and Digital Rights Law that would require compulsory monitoring of cryptocurrency transactions exceeding 1 million rubles (about $13,700), according to Bits.media. Under the proposal, crypto exchange operators would be required to identify customers, flag suspicious activity, establish internal controls and document management systems, submit data to government agencies, and connect with the Central Bank of Russia. Digital compliance checks would become mandatory, covering money laundering risks, financing of designated harmful organizations, and other wallet- and crypto-related threats. The bill would also allow exchangers to delegate customer identification to banks and require them to operate as noncredit institutions. The central bank would be empowered to limit their operations, demand management changes, remove firms from the registry, or seek court-ordered liquidation. The draft includes administrative and criminal penalties. Officials could face fines of 30,000–50,000 rubles, while legal entities could be fined 700,000–1,000,000 rubles. Organizing illegal cryptocurrency circulation could carry a prison term of up to seven years.

May 19 (BlockBeats) — Bloomberg reported that the U.S. Securities and Exchange Commission is expected as soon as this week to unveil an "innovation exemption" for tokenized equities, creating a new framework for trading onchain digital securities. According to the report, the SEC is leaning toward allowing third parties to issue tokens linked to stock prices without authorization or consent from the underlying public companies, enabling such instruments to trade on DeFi platforms. These third-party tokens would effectively function as synthetic assets that track equity prices, and some may not provide common-stock features such as voting rights or dividend entitlement. Under the SEC's proposal, platforms that cannot provide those rights would no longer be eligible to list the tokens. The initiative is seen as the first large-scale test of whether the U.S. regulatory system can support moving stock trading onto crypto-native infrastructure. Proponents say tokenized securities could enable near real-time settlement and 24/7 trading, improving market efficiency. Critics warn of market fragmentation, weaker price transparency, and diminished KYC and anti-money-laundering protections. Institutions including the New York Stock Exchange, Nasdaq, and Bullish have already moved into the tokenized stock space. Separately, the U.S. Senate Banking Committee previously advanced the Clarity Act, legislation focused on digital-asset market structure.

Minnesota Governor Tim Walz has signed a virtual currency bill that sets a unified statewide framework allowing state-chartered banks and credit unions to offer cryptocurrency custody services beginning August 1, CoinDesk reported. The new law requires customer digital assets to be held separately from an institution's own assets and directs providers to file risk management and cybersecurity plans with the Minnesota Commissioner of Commerce at least 60 days before launching the service. Walz also signed separate legislation that will ban cryptocurrency ATMs and kiosks statewide, effective August 1, citing their frequent use in fraud schemes that disproportionately target older residents.

The U.S. Securities and Exchange Commission has rescinded its decades-old \u0022gag rule,\u0022 a policy that restricted companies and individuals from publicly commenting after reaching an enforcement settlement. With the rule removed, parties that settle with the SEC will no longer be required to remain silent.