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U.S. Securities and Exchange Commission Prepares to Allow Blockchain-Based Tokenized Stock Trading

U.S. Securities and Exchange Commission Prepares to Allow Blockchain-Based Tokenized Stock Trading

The SEC’s proposed exemption could create a temporary regulated path for tokenized equities and ETFs, while DTCC, Nasdaq, NYSE, Kraken, Robinhood, Securitize, and tZERO advance blockchain-based securities infrastructure.

Fact Check
The claim is substantively accurate and well-supported by primary SEC sources. SEC Release No. 34-105047 (March 18, 2026) shows the SEC has already gone beyond 'preparing' — it formally approved Nasdaq's rule change enabling blockchain-based tokenized stock trading via a DTC pilot program. The SEC's own January 28, 2026 staff statement further confirms the agency is actively facilitating tokenized securities trading within the existing regulatory framework. The minor imprecision in the claim is that 'preparing to permit' understates the situation: the SEC has already approved a specific mechanism. The core assertion — that the SEC is enabling blockchain-based tokenized stock trading — is confirmed by multiple authoritative government sources.
Summary

The U.S. Securities and Exchange Commission is reportedly close to releasing an exemption that could let eligible firms issue and trade tokenized versions of publicly listed securities under reduced regulatory requirements for up to three years. According to the article, the framework would allow tokenized security offerings subject to volume and participant limits, after which a project would either need to demonstrate sufficient decentralization for potential CFTC oversight or seek full SEC registration. The update also adds that DTCC, which clears and settles nearly all U.S. stock transactions, plans to begin tokenized asset trading in a test environment in July with a broader rollout in October, following a no-action letter from the SEC’s Division of Trading & Markets in December 2025 covering equity and ETF securities held in DTCC custody. The article further says the SEC’s January 28, 2026 joint staff statement distinguished issuer-sponsored tokenized securities carrying real equity rights from third-party synthetic products that only provide price exposure. Nasdaq and NYSE are also developing blockchain-based stock market infrastructure, while crypto-native firms including Kraken, Robinhood, Securitize, and tZERO are expanding tokenized securities activity.

Terms & Concepts
  • Tokenized stock: A blockchain-based digital representation of a traditional stock, which may either confer actual equity rights or simply track the stock’s price depending on its structure.
  • ETF: An exchange-traded fund is a pooled investment vehicle whose shares trade on an exchange and can hold baskets of assets such as stocks or other securities.
  • DeFi: Short for decentralized finance, it refers to blockchain-based financial applications and markets that operate through smart contracts rather than traditional intermediaries.