SEC Developing Framework to Permit Tokenized Stocks
The Trump administration is reportedly readying a plan for trading digital versions of securities, or tokenized stocks.
➤ The SEC is reportedly developing an 'innovation exemption' to allow for the trading of tokenized stocks, potentially reconfiguring the U.S. stock market. ➤ This framework could enable trading of tokenized securities without issuer consent, raising concerns about market fragmentation, investor protection, and potential vulnerabilities like hacks and lack of standards. ➤ Industry players like SIFMA and Citadel Securities have warned about the impact on KYC and AML laws, while Securitize highlights the risk of market fragmentation and investor uncertainty.













