SEC proposal could open crypto markets to tokenized public stocks

The U.S. Securities and Exchange Commission is considering an exemption that would allow blockchain platforms to offer tokenized versions of publicly traded stocks without direct approval from the companies. The proposal may require tokenized stocks to have the same rights as traditional shares, including dividends and voting access. This could open up new opportunities for round-the-clock trading and faster settlement processes in the financial industry. However, concerns have been raised about market fragmentation and the involvement of issuers in the process. The SEC’s discussions on tokenized securities come as the Senate advances legislation to establish a federal framework for the digital asset market.