SEC Plans Innovation Exemption for Tokenized Stocks, Enabling 24/7 On-Chain Trading

SEC proposes exemption allowing tokenized shares of NVIDIA, Apple, and Tesla to trade 24/7 on-chain. Tokens track economic exposure but lack voting or dividend rights, supporting fractional settlement.

Woofun AI reports that the SEC intends to unveil an 'innovation exemption' for tokenized stocks during a public meeting on Friday. This regulatory measure would permit blockchain-based trading of shares from companies including Apple, Tesla, and NVIDIA around the clock, facilitating fractional ownership and near-instant settlement. The tokens are designed to mirror the economic value of the underlying equities without conferring voting privileges or dividend entitlements. This initiative aligns with SEC Chairman Paul Atkins' Project Crypto agenda, while separate proposals for Regulation Crypto aim to streamline token fundraising. Market participants such as Robinhood Chain, SOL, and Base are already preparing infrastructure for these on-chain equity markets.