SEC Tokenized Stock Plan Could Enable 24/7 U.S. Trading

The SEC is developing an innovation exemption for platforms seeking to offer tokenized securities. The framework could let firms trade digital versions of U.S. stocks under federal requirements. Meanwhile, SEC Chair Paul Atkins supports efforts to move financial markets onto blockchain networks.

The proposed structure could allow continuous trading and faster blockchain settlement for eligible securities. It could also connect digital share records with established market systems and securities rules. However, the SEC still must address custody, surveillance, clearing, settlement, and investor protection.

The agency recently canceled a meeting that could have covered parts of its crypto regulatory agenda. Officials cited a scheduling issue, and the cancellation did not change requirements. Therefore, platforms seeking tokenized stock markets must continue operating within current regulations.

24/7 Trading Could Reshape Equity Markets

Tokenized stocks could extend trading beyond the fixed hours used by traditional U.S. exchanges. Blockchain networks can process transactions continuously, supporting trading at night, on weekends, and on holidays. Consequently, eligible markets could operate on schedules that differ from conventional venues.