SEC set to unveil innovation exemption for tokenized stocks

The SEC is preparing to drop one of the most consequential crypto-meets-traditional-finance policy moves in years: an “innovation exemption” that would let platforms trade tokenized versions of US public stocks on blockchain rails, complete with 24/7 trading hours and faster settlement. The guidelines, expected shortly after June 17, 2026, would allow crypto-native platforms to offer digital representations of existing equities without going through the full broker-dealer registration process. What the exemption actually does Under the framework championed by SEC Chair Paul Atkins, approved platforms would be able to list tokenized shares that mirror traditional stocks but trade on-chain. The key constraint: these digital versions must carry the same rights and protections as their conventional counterparts. Commissioner Hester Peirce has been careful to emphasize the boundaries. The exemption is designed for “limited and temporary experimentation,” not a wholesale replacement of existing market infrastructure. Stock markets currently operate roughly 6.5 hours per weekday. Tokenized versions could trade continuously, including weekends and holidays. Traditional stock trades take on...