The U.S. Securities and Exchange Commission (SEC) is preparing to take a historic step by allowing stocks to trade on blockchain networks.
According to The Information, SEC staff are working on a plan to let equities operate “like cryptocurrencies”. Specifically, the move will enable faster settlement, lower costs, and 24/7 trading.
This effort comes as part of the broader Project Crypto initiative, which SEC Chair Paul Atkins launched in August to modernize securities law and bring U.S. financial markets on-chain.
Pushback From Wall Street Giants
However, despite the momentum, traditional financial players are mounting resistance. Firms such as Citadel Securities and other major brokerages reportedly oppose the plan. They warn that it could disrupt existing market structures and threaten their entrenched roles as intermediaries.
In addition, industry lobbyists have raised concerns that tokenized stocks might blur lines around investor protections, custody requirements, and clearing systems. This echoes similar objections raised by the World Federation of Exchanges (WFE) in its recent letter urging regulators to slow down tokenization.
Coinbase and Robinhood at the Forefront
The SEC’s internal discussions come at a time when crypto firms are already pushing into tokenized equities. Specifically, Coinbase is seeking permission to offer U.S. stocks on-chain, while Robinhood has launched tokenized shares for European customers. Both firms are betting that the future of equities trading lies in blockchain rails.
An SEC approval would put Coinbase and Robinhood in a first-mover position on U.S. soil. In turn, it will also create a path for Wall Street incumbents to pivot into tokenization under clearer rules.
SEC’s Project Crypto Vision
Under Atkins, the SEC plans to update rules around custody, securities, and market systems to support tokenized assets. It’s also looking at easier licensing for “super apps.”
These apps would let users trade crypto, tokenized stocks, bonds, and DeFi products all under one set of rules.
Meanwhile, the U.S. SEC is also preparing to introduce an “innovation exemption” by December to allow crypto firms to launch products without facing heavy regulations.
Atkins acknowledges that current rules hinder blockchain innovation and aims to draft new, crypto-friendly regulations in the coming months. He advocates for the U.S. to become a global leader in digital assets, drawing inspiration from the EU’s MiCA framework.