SEC to propose innovation exemption for tokenized stocks, allowing 24/7 fractional trading of major stocks like Apple and Tesla. Robinhood Chain volume jumped fivefold. Could unlock US retail access.
The SEC is preparing to propose an innovation exemption for tokenized stocks, a move that would grant legal clarity to onchain equity markets operating in a regulatory gray zone. Bloomberg reported the plan, part of Chair Paul Atkins' "Project Crypto" agenda. An open meeting Friday could release details.
The exemption would let tokenized versions of stocks like Apple and Tesla, as well as Nvidia, trade on blockchains around the clock in fractional sizes with near-instant settlement. The tokens track economic exposure but carry no voting or dividend rights, justifying lighter regulatory treatment. A separate "Regulation Crypto" framework for token sales is also on the table.
Tokenized stocks have been the engine behind Robinhood Chain, whose RWA volume jumped fivefold this summer, and a major push across Solana and Base. The NYSE is building its own onchain settlement platform. BlackRock launched tokenized funds on Solana and Ethereum. Circle's Arc lined up BlackRock and Visa as validators. All of it has run in a regulatory gray zone, mostly routed to non-US users.
Tyler Warner, writing in Decrypt's Morning Minute, described the potential move as "one of the more bullish crypto news events in years," with the RWA meta getting a full green light. A formal exemption would hand that entire movement the legal clarity it's been missing, potentially opening US retail access to the products these chains were built for.
Among the stocks targeted for tokenization, Nvidia (NVDA) trades at $224.09 with an Alpha Score of 77/100 (Strong). The SEC's open meeting is scheduled for Friday, where details on the innovation exemption could be released.
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