SEC clears path for tokenized stocks, bringing markets closer to 24/7 trading

The US Securities and Exchange Commission on Thursday issued an order creating an immediate regulatory pathway for trading venues to issue tokenized representations of publicly traded US stocks, via a five-year "Innovation Exemption." Holders of stock tokens must retain the same rights as traditional shareholders, and companies must be able to object to their securities being tokenized. The move comes two days after the Senate blocked the Clarity Act, the crypto market structure bill that would have defined rules for digital assets. SEC Chair Paul Atkins said the exemption aims to enable responsible innovation while protecting investors and market integrity.