SEC Could Unveil Tokenized Securities Exemption Friday, Paving Way for 24/7 Stock Trading

The U.S. Securities and Exchange Commission (SEC) is preparing to advance two cryptocurrency regulatory initiatives, including a potential exemption governing tokenized securities, Bloomberg reported.

The SEC will hold an open meeting on Friday to consider a tailored offering framework for certain investment contracts involving crypto assets, according to the report.

The agency could also unveil an “innovation exemption” for tokenized securities as soon as Friday. The measure could allow blockchain-based trading of tokenized stocks around the clock.

Under the potential framework, public companies could object to third parties tokenizing their shares. It could also impose stricter anti-money-laundering (AML) safeguards, potentially requiring trading platforms to be U.S. entities.

Source: Bloomberg