Competition with brokerages
Major crypto firms, including Coinbase, have signaled they will start offering tokenized stock trading in the U.S. once the rules permit it.
Kraken, Robinhood, and others have already introduced similar products outside the country, and Coinbase recently launched tokenized stock trading internationally.
The innovation exemption could put crypto upstarts into direct competition with traditional brokerages like Charles Schwab and Morgan Stanley’s E*Trade.
SEC Chair Paul Atkins said back in June that the exemption would let companies experiment with new digital asset business models without following all SEC disclosure and investor-protection rules.
Concerns over fragmentation
There were worries that trading tokenized securities could further fragment the stock market.
The new proposal reportedly includes an option for an issuer to object to any third-party listing of its stock in tokenized form.
Officials are also said to be tightening controls and adding anti-money-laundering protections, potentially requiring that platforms trading digital tokens be U.S. entities.
Why the Clarity Act stalled
The bill is said to have stalled largely over ethics concerns after President Donald Trump’s latest financial disclosure showed he earned more than $1.4 billion from his family’s crypto ventures in 2025.
Senate Majority Leader John Thune filed to initiate a procedural vote on the Clarity Act in mid-September.
