The SEC is preparing a policy shift that could open U.S. markets to tokenized stock trading. The plan would give crypto firms a clearer path to offer blockchain-based shares. It also comes as Coinbase, Binance, and Wall Street firms expand tokenized equity products.
Sec Moves Toward Tokenized Stock Framework
The U.S. Securities and Exchange Commission is working on a new framework for tokenized stocks. The policy could allow crypto firms to offer blockchain versions of U.S. equities. These products may include shares linked to companies such as Nvidia, Google, and SpaceX.
The plan follows the growing demand for faster and wider access to traditional markets. Tokenized stocks can trade throughout the day, and they can settle almost instantly. Therefore, the model could challenge the limits of standard exchange trading hours.
The SEC had earlier slowed discussions over custody and investor protection concerns. However, market participants now expect Chair Paul Atkins to introduce an innovation exemption soon. The exemption would let firms test new models under lighter regulatory conditions.
The expected policy would not remove all compliance duties for crypto platforms. Instead, it could create a controlled route for testing tokenized equity services. As a result, firms could bring new products to market while regulators assess risks.
https://x.com/coingecko/status/2067231048266904057
Coinbase has already outlined plans for 1:1-backed tokenized stocks outside the United States. Binance and other global platforms have also explored similar products for non-U.S. users. Consequently, U.S. rules could determine whether domestic platforms can compete in this market.
The move also fits a broader change in the SEC’s approach to digital assets. Under Atkins, the agency has signaled more interest in clear rules and market experimentation. Still, the Commission must balance innovation with custody, disclosure, and market fairness standards.
Tokenized Stocks Gain Momentum Across Crypto and Wall Street
Tokenized stocks have become one of the fastest-growing areas in the crypto market. CoinGecko data shows the category expanded sharply between January 2024 and May 2026. The number of tokenized stock coins rose from 14 to 478 during that period.
That increase marked a 3,314% jump in listed tokenized stock assets. The growth also outpaced many other digital asset categories over the same period. Meanwhile, real-world asset tokens also grew strongly, rising from 64 to 1,282 coins.
The trend shows stronger demand for blockchain-based versions of traditional financial products. Tokenized equities can offer faster settlement, wider access, and programmable features. However, their structure depends on reserves, custody, and legal rights attached to each token.
Wall Street firms have also started building tokenization products for private and public markets. Citigroup plans to offer tokenized shares of private companies, including OpenAI and Anthropic. The bank intends to start with foreign clients before expanding later.
The New York Stock Exchange is also developing a tokenization platform for stock trading. Its planned system would support extended market access and faster settlement. Therefore, the exchange aims to modernize equity trading without removing traditional market protections.
The SEC’s coming decision could shape how tokenized stocks develop in the United States. Clear rules may help crypto firms and financial institutions launch products with fewer legal disputes. However, the agency still must define custody standards, shareholder rights, and disclosure duties.
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