SEC: Go ahead and trade stocks like they’re crypto
The SEC’s long-anticipated move comes two days after the Clarity Act failed to move forward in the Senate. America’s financial markets are one step …
The Securities and Exchange Commission announced yesterday that it will grant a temporary waiver permitting blockchain‑based platforms to list tokenized versions of U.S. equities. The move could pave the way for continuous, 24‑hour trading of digitized shares that have traditionally been confined to market hours.
SEC Allows Tokenized Stocks
Under the new guidance, eligible platforms may create digital tokens that represent underlying common stocks, allowing investors to buy and sell those tokens on a blockchain ledger. The SEC framed the allowance as an experimental step, emphasizing that the rule is limited in time and subject to further review.
The agency said the experiment is intended to gauge how tokenization impacts market integrity, liquidity and investor protection. By mirroring the ownership of a traditional share, the tokens would function as a bridge between conventional equity markets and emerging distributed‑ledger technology.
30‑day Objection Window
The SEC also imposed a safeguard that gives the issuer of each underlying stock a 30‑day period to raise objections to any tokenization attempt. Companies must be notified of a pending token listing and can respond within that window if they believe the token would violate securities laws or dilute shareholder rights.
This objection period is designed to give issuers control over how their equity is represented in the digital sphere. If a company files an objection, the platform must halt the token’s issuance until the issue is resolved with the regulator.
Dividends and Voting Rights
Investors who acquire tokenized shares will be entitled to the same economic and governance benefits as holders of the physical stock. The SEC requires that token owners receive any dividends declared by the corporation and retain the ability to cast votes at shareholder meetings.
Ensuring parity between token and traditional share ownership is meant to prevent a two‑tier system where digital holders receive fewer benefits. The rule mandates that custodians of the tokens must pass through dividend payments and voting instructions to the token holders in a timely manner.
AMC CEO Conflict
The new policy arrives amid a recent dispute involving the chief executive of AMC Entertainment. Earlier this month the AMC CEO publicly criticized Robinhood after discovering that an AMC‑linked token was trading on the platform without the company’s prior consent. The disagreement highlighted the need for a clear objection mechanism, which the SEC’s 30‑day window now provides.
The clash underscores how tokenization can surface tensions between traditional issuers and modern trading venues. As blockchain platforms seek to expand their offerings, issuers like AMC may increasingly rely on the objection process to protect their brand and shareholder interests.
Overall, the SEC’s temporary allowance signals a cautious yet forward‑looking stance toward integrating blockchain technology with mainstream equity markets. Regulators, platforms and issuers will be watching closely to see whether tokenized stocks can deliver the promised efficiency without compromising the rights and protections long afforded to investors.
Source: morningbrew.com · 2026-09-18