The SEC plans an 'innovation exemption' letting crypto platforms trade tokenized US stocks. Coinbase, Robinhood, Kraken prepare. Market cap hits $6.4B, but opponents want formal rulemaking.
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The SEC plans to unveil an “innovation exemption” in the coming weeks that would let crypto platforms trade tokenized versions of U.S. stocks, according to people familiar with the matter.
Coinbase is preparing to launch domestic tokenized stock offerings once the rules take effect. Robinhood and Kraken already sell similar products to international clients. The market for retail tokenized stocks has grown to $6.4 billion as of mid-June, up from the millions recorded at the end of 2024, industry data show. Recent activity, such as the $4.3 billion in tokenized stock trading on Solana tied to the SpaceX IPO, highlights the growing demand.
Tokenized stocks track equity prices on a blockchain, settling near-instantly and trading 24/7. Traditional exchanges close at 4 p.m. Eastern, shut on weekends, and settle on T+1. The shift would bring round-the-clock trading to a market accustomed to fixed hours.
Citadel Securities and the Securities Industry and Financial Markets Association (SIFMA) oppose the exemption. They want formal rulemaking rather than ad hoc exemptions that could leave gaps in investor protection. The SEC under former Chair Gary Gensler took an enforcement-heavy approach to digital assets, filing lawsuits against many tokens as unregistered securities. Under Chair Paul Atkins, appointed during the Trump administration, the agency has pivoted toward pro-innovation policy.
The framework relies on exemptions rather than comprehensive legislation. Exemptions can be revoked, and any platform that later loses its regulatory blessing would create an uncomfortable situation for holders of tokenized assets. A $6.4 billion market looks small next to the roughly $50 trillion U.S. equity market. Thin liquidity means wider spreads and more volatile pricing, especially during stress events.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.