U.S. SEC Plans New Policy To Enable Crypto Firms To Offer Tokenized Stocks

Boluwatife Adeyemi
Boluwatife Adeyemi

Boluwatife Adeyemi

Senior Journalist
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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Highlights

  • The SEC is planning to release a policy for tokenized stock trading.
  • The policy is expected to be released in the coming weeks.
  • This comes as firms including Coinbase roll out tokenized stocks offering.

The U.S. Securities and Exchange Commission (SEC) is planning a new policy that will allow tokenized stocks trading in the country. This comes as crypto firms such as Coinbase and Binance move to offer tokenized stocks.

SEC Planning To Allow Tokenized Stocks Trading In The Coming Weeks

According to a Reuters report, the Commission is readying a new policy that would allow crypto firms to offer tokenized stocks, citing analysts and lawyers. This will enable traders to trade stocks of U.S. companies such as SpaceX, Google, and Nvidia 24/7, with the transactions settled instantly.

This follows initial reports that the SEC was pausing plans to allow tokenized equities over regulatory concerns. The regulator had raised concerns about investor protection and custody requirements, which prompted the decision to halt plans for the innovation exemption.

However, crypto industry insiders now expect SEC Chair Paul Atkins to soon unveil the innovation exemption. This would enable crypto firms to experiment with new business models without having to comply with all of the SEC’s disclosure and innovation-protection rules.

This comes as firms move to offer tokenized stocks, with this offering already available to non-U.S. users. As CoinGape reported, Coinbase plans to launch 1:1-backed tokenized stocks soon, which could coincide with the Commission’s unveiling of the innovation exemption rules.

The Fastest Growing Category Since 2024

Crypto analytics platform CoinGecko revealed that tokenized stocks are crypto’s fastest-growing coin category since 2024. The platform noted that from January 31, 2024, to May 31, 2026, tokenized stocks surged from 14 to 478 coins, representing a 3,314% increase.

Furthermore, RWA ranks as the second-fastest-growing category, with the number of coins increasing from 64 to 1,282, representing a 1,903% increase over the same period. Meanwhile, it is worth noting that Wall Street giants are also embracing tokenization amid the SEC’s plans to unveil the innovation exemption rules.

As CoinGape reported, Citigroup is planning to launch tokenized shares of private companies such as OpenAI and Anthropic. It plans to launch this offering initially for foreign investors with plans to offer it to U.S. clients at some point.

At the same time, the NYSE is building its tokenization platform to offer 24/7 stock trading. These tokenized stocks will be similar to their traditional counterparts and will offer users the same benefits, with trade settlement instant rather than waiting for traditional trading hours.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.