The SEC is expected within the next week to release an 'innovation exemption' for tokenized stocks, allowing broader on-chain trading by crypto exchanges and some DeFi protocols during a limited experimental window. The move follows the agency's approval of Nasdaq's rules for tokenized equities in March and the NYSE's rules last month, and it's part of the regulator's broader Project Crypto initiative. If finalized, the exemption could determine whether tokenized stocks grow into a regulated extension of U.S. equities or remain a crypto side market.
Why the SEC moved now
The exemption creates a narrow lane for platforms that don't currently qualify under the approved exchange rules. Crypto-native venues and certain DeFi protocols will be able to list tokenized stocks during a defined experimental period. Under the proposal, any platform that offers tokenized stocks must provide the underlying benefits — voting rights and dividends — or lose the right to list them altogether. That distinction matters: in January, the SEC's joint staff statement drew a line between issuer-sponsored tokenized securities, which carry real equity, and third-party synthetic products, which don't.
Who's already in the game
Kraken's xStocks platform lists 100 fully backed, 1:1 tokenized U.S. stocks and ETFs, but it's restricted to users outside the U.S. Since June 2025, the platform has processed over $25 billion in total transaction volume. Coinbase sought SEC approval to offer tokenized equities back in 2025 — it hasn't gotten the green light yet. Robinhood has launched stock tokens in the EU and is building a layer-2 blockchain dedicated to real-world asset tokenization. Dinari, a smaller player, secured a broker-dealer license in June 2024 to offer blockchain-based shares to U.S. investors. And the DTCC plans to begin limited production trades of tokenized assets this July, ahead of a broader rollout in October.
What's at stake
The numbers are tiny. The entire on-chain real-world asset market is roughly $30 billion — that's 0.02% of the global equity market capitalization of $126.7 trillion, based on 2024 data. The tokenized stock slice is even smaller. The SEC's exemption could flip that dynamic, but only if platforms actually comply with the benefit requirement and if the experimental period leads to permanent rulemaking. Right now, the path depends on how many crypto-native venues can deliver voting rights and dividends on-chain, something few have done at scale.
The DTCC's July production trades will be the first real test of settlement infrastructure for tokenized equities. If those go smoothly, the October launch could bring more institutional volume. But the SEC's exemption is the regulatory wildcard — it'll decide whether the next wave of tokenized stocks comes from crypto exchanges or stays inside the traditional market plumbing.
