The U.S. Securities and Exchange Commission is expected to release an innovation exemption for tokenized stocks as soon as this week, according to people familiar with the matter. The exemption creates a new framework for trading tokens, signaling a major shift for onchain U.S. equity trading projected for 2026.
What the exemption covers
The exemption would allow the trading of tokenized stocks — digital representations of traditional equities on a blockchain — under a new regulatory framework. People familiar with the planning told Bloomberg the SEC is finalizing the rules, which are designed to open a path for blockchain-based trading without requiring companies to register tokens under existing securities laws. The framework is separate from the SEC’s ongoing rulemaking on crypto assets and focuses specifically on tokenized versions of stocks already listed on exchanges.
Why now
The timing follows years of industry pressure for clearer rules around tokenized securities. While the SEC has approved some tokenized funds and debt instruments, equity tokenization has lagged due to regulatory uncertainty. The new exemption aims to bridge that gap by setting standards for custody, settlement, and disclosure. The move comes as several financial firms have been testing tokenized stock platforms in anticipation of federal guidance.
What’s next for onchain trading
Market participants expect the exemption to accelerate the launch of onchain U.S. equity trading, which industry projections target for 2026. Under the new framework, broker-dealers could offer tokenized versions of major stocks to both retail and institutional investors, with trades settled on a blockchain rather than through traditional clearinghouses. The SEC has not yet publicly commented on the exemption. A formal announcement could come within days, the people familiar said.
