SEC Proposes Letting Crypto Trade Alongside Stocks on Exchanges

SEC Chair Paul Atkins said the agency has "moved purposely" to support President Donald Trump's goal of making the U.S. the "Crypto Capital of the World." The SEC and CFTC have launched Project Crypto, a joint regulatory initiative to modernize digital asset regulation. Atkins had previously hinted at an "innovation exemption," which the SEC is now using to develop a framework for trading tokenized versions of Wall Street-listed stocks.

The proposal follows a sharp policy reversal from the Gensler era. Earlier this year, the SEC issued an interpretation clarifying that "most cryptocurrency assets," including non-fungible tokens and dollar-backed stablecoins, are not securities. The agency also dropped its lawsuit against Binance, which maintained significant business ties with USD1, a stablecoin launched by World Liberty Financial, a venture linked to the Trump family.

A section of Democrats has alleged the agency is undermining trust by dismissing cases against cryptocurrency firms tied to Trump and his family. Investor groups have urged the SEC to retain quarterly reporting requirements, arguing investors need frequent disclosures despite cost concerns.

If the proposal passes, it would let brokers and exchanges offer crypto and equities in the same account, under the same regulatory umbrella. That would effectively end the wall between traditional and digital asset trading on U.S. regulated platforms.