SEC prepares innovation exemption to allow third‑party tokenized stocks to trade 24/7 but carry no shareholder rights

first published 2026-05-18T23:30:28Z

The SEC, led by Chair Paul Atkins, is expected to release an innovation exemption for tokenized U.S. equities as soon as May 18, 2026. The exemption would create a temporary framework allowing crypto-native platforms (potentially including Coinbase) and DeFi protocols to offer tokenized U.S. stocks under lighter registration requirements, with guardrails such as exposure limits, disclosures, and conditional terms. The move follows Nasdaq and NYSE approvals for tokenized trading earlier in 2026 and has drawn objections from traditional banks and exchanges. Full details have not yet been published on sec.gov.

AI Analysis

The SEC is expected to publish an innovation exemption (date given) that would permit crypto-native platforms and DeFi to offer tokenized U.S. equities under lighter registration and specified guardrails; this follows Nasdaq/NYSE tokenized trading approvals and has drawn objections from banks/exchanges — a regulatory change that can directly affect where and how tokenized stocks trade.

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