The SEC is set to release a so-called “innovation exemption” for tokenized stocks, which will pave the way for trading digital versions of securities, reported Bloomberg on Tuesday.
The agency’s framework for tokenized stock trading under the Trump administration’s direction is expected to be finalized this week, the anonymous sources told the outlet. These tokenized assets would also be tradeable on decentralized crypto platforms in a move that could “reshape the landscape of the American stock market,” it reported.
Huge Shift in US Crypto Infrastructure
Under Chair Paul Atkins, the SEC has signaled support for tokenization since mid-2025, including exemptions to accelerate on-chain securities trading, aligning with broader US policy to lead in digital assets.
The SEC is leaning toward allowing trading of tokens that do not have the backing or consent of the public companies whose shares they track, reported Reuters. These tokens may not provide traditional shareholder rights, such as voting power or dividends, the report added.
The move could be one of the biggest shifts into crypto infrastructure yet, paving the way for 24/7 trading of digital securities, potential DeFi integration for equities, and growth in platforms handling tokenized assets.
DeFi analyst Ignas said it was bullish for multiple assets, including ONDO, CFG, PENDLE, and HYPE, as well as lending markets that accept tokenized collateral, such as AAVE, MORPHO, and FLUID. Tokenization is shifting from plans to policy in a structural shift that will enable round-the-clock trading and decentralized rails.
“We’ve entered a global race to tokenize money and capital markets,” commented Token Terminal.
“The economic advantages of asset tokenization are too good to ignore, which is why we believe that all other major nations and economic zones will try to follow the US playbook when it comes to stablecoins and asset tokenization.”
Tokenized Stocks Remain Small
Tokenized stocks comprise a small piece of the larger tokenized real-world asset pie with just $1.45 billion, or 4.3% share of distributed TVL, according to RWA.xyz.
Tokenized US Treasuries make up the lion’s share with 46% of $15.5 billion, and Ethereum is the blockchain of choice with a market share exceeding 60% (including layer-2s) of all tokenized RWA.
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