U.S. SEC considering allowing stock tokenization trading

The U.S. Securities and Exchange Commission (SEC) is reportedly pursuing measures to allow existing stocks to be tokenized and traded.

On the 30th (local time), The Information reported, citing multiple sources, that the SEC is discussing the possibility of allowing companies to engage in stock tokenization trading. The discussions are centered on companies that have submitted regulatory exemption applications (exemptive relief) similar to a sandbox.

According to the report, the core of the measure is to convert traditional stocks into digital tokens using blockchain technology so they can be traded easily like virtual assets. In this case, stock trading is expected to become faster and more flexible than before.

The SEC is reviewing whether such a plan can be pursued within the current legal framework or whether new legislation is required. However, voices inside and outside the financial sector have raised concerns that introducing the system could inadvertently increase market uncertainty and confusion.