Crypto stocks extend gains after SEC opens door to tokenized stock trading

U.S. crypto-related stocks extended their gains on Friday after the Securities and Exchange Commission approved a temporary exemption allowing certain platforms to facilitate trading of tokenized stocks, creating a regulatory pathway for digital versions of U.S.-listed securities.

Strategy MSTR rose 7%, MARA Holdings MARA gained 6%, Coinbase Global COIN, Galaxy Digital GLXY, and Circle Internet Group CRCL gained roughly 6% while Robinhood Markets HOOD added 3%.

Securitize SSECZ, a platform for tokenizing and managing digital asset securities, was 6% higher.  Riot Platforms RIOT gained 4%, Hut 8 HUT rose ~2%, and Hyperliquid Strategies PURR gained 7%.

The SEC's five-year “Innovation Exemption” applies to tokenized securities venues and certain liquidity providers. The venues can trade tokenized National Market System or NMS stocks through permissioned automated market makers and liquidity pools.

The trading of tokenized NMS stocks is subject to limits on the number of symbols and volume traded. The stocks will provide holders the same rights and privileges as does traditional NMS stock of an equivalent class.

Before making a tokenized NMS stock available for trading by an unaffiliated third party, the tokenized securities venue must provide written notice and an opportunity to object to the issuer of the underlying NMS stock.