The U.S. Securities and Exchange Commission (SEC) is reportedly preparing a new regulatory framework that could pave the way for trading tokenized versions of publicly traded stocks, marking another significant step in the Trump administration’s broader push toward expanding the crypto market.
According to a Bloomberg report citing people familiar with the matter, the SEC could unveil its proposed “innovation exemption” as early as this week. The framework is expected to create regulatory pathways for digital securities tied to traditional equities, potentially reshaping how investors access and trade stocks in the United States. This move would be among the most significant regulatory actions taken under SEC Chair Paul Atkins.
Tokenized securities could reshape U.S. markets
Tokenized stocks are blockchain-based representations of traditional shares that allow investors to trade securities through crypto infrastructure instead of conventional brokerage systems. Supporters argue the model could improve market accessibility, reduce settlement times, and enable around-the-clock trading.
The defining, and the most controversial, feature of the proposed exemption is its scope. According to reports, the framework would allow digital tokens linked to public-company shares to trade on decentralized platforms, including tokens issued by third parties without the consent of the companies involved. The third-party tokenized securities would effectively create parallel blockchain-based markets for publicly traded equities. While they would mirror stock prices, they may not necessarily carry traditional shareholder rights such as dividends or voting access unless the platforms choose to provide them. Regulators are reportedly considering restrictions on platforms that omit those rights.
The exemption would also let crypto-native platforms, such as Coinbase, offer on-chain trading of U.S. equities without full broker-dealer registration in certain circumstances, during an experimental period. That regulatory relief is the practical core of what makes the exemption meaningful to crypto firms.
Importantly, the SEC has consistently emphasized that tokenized securities remain securities and subject to federal securities law. The innovation exemption provides experimental, time-limited relief; not a reclassification of tokenized stocks out of the securities regime.
SEC expands broader crypto regulatory push
The reported initiative comes as U.S. regulators continue to increase their engagement with the digital asset sector. In September 2025, the SEC and the Commodity Futures Trading Commission (CFTC) jointly launched a public roundtable focused on improving crypto regulatory clarity.
The discussion covered major industry topics, including decentralized finance (DeFi), perpetual futures contracts, and the growth of 24/7 crypto trading markets, signaling stronger inter-agency coordination on digital asset oversight.
The SEC has also accelerated its broader crypto policy agenda under its “Project Crypto” initiative launched in August 2025. The program was introduced as part of efforts to position the United States as a global leader in blockchain innovation and digital asset development.
The innovation exemption has been discussed as part of Project Crypto since mid-2025, with industry participants submitting comments throughout that process.
Trump administration signals pro-crypto direction
The latest tokenized stock proposal further reflects the Trump administration’s increasingly crypto-friendly stance, with regulators showing greater openness toward digital asset innovation compared to previous years.
The framework could become one of the most significant developments for tokenized finance in the U.S. market, especially as traditional financial firms and crypto companies race to expand blockchain-based trading infrastructure.
The development also comes amid growing institutional interest in tokenized real-world assets (RWAs), including tokenized stocks, bonds, and funds. Analysts project the tokenized asset market could swell to anywhere from roughly $2 trillion to more than $10 trillion by 2030, against a U.S. equity market currently valued at around $126 trillion. Several crypto firms have already explored offering blockchain-based equity products outside the U.S., though regulatory uncertainty has slowed broader domestic adoption.
Also read: GENIUS Act at 10 Months: Inside America’s New Stablecoin Rulebook
