SEC Prepares Framework for Trading Tokenized Stocks on Crypto Platforms, Reports Bloomberg
May 18, 2026 — Reuters
The U.S. Securities and Exchange Commission (SEC) is preparing to introduce a regulatory framework that would allow trading in tokenized or digital versions of securities, according to a report by Bloomberg News citing sources familiar with the matter.
This prospective move, expected to be announced imminently, involves the release of an “innovation exemption” targeted at tokenized stocks. The new regulation is anticipated to enable the trading of these digital securities on decentralized crypto platforms, marking a significant shift from traditional stock exchanges. It would represent a strategic effort by the Trump administration to integrate stock trading into the rapidly evolving cryptocurrency space, providing a fresh regulatory pathway for such activities.
What Are Tokenized Stocks?
Tokenized stocks are digital tokens that represent shares of publicly traded companies but are issued and traded on blockchain-based platforms rather than conventional stock markets. These tokens can mimic the price movements of the underlying stocks but may differ in terms of shareholder rights.
According to the Bloomberg report, the SEC’s emerging framework might allow token trading even without the backing or explicit consent of the public companies whose shares the tokens track. Investors trading these tokens may not receive typical shareholder benefits, such as voting rights or dividends. This raises questions about investor protections and the legal nature of such tokens as securities.
Regulatory and Legislative Context
The move aligns with recent initiatives from the Republican-led Senate Banking Committee, which has advanced legislation aimed at clarifying U.S. regulations surrounding cryptocurrencies. This legislative momentum reflects a broader governmental effort to address the challenges and opportunities posed by digital assets in financial markets.
While the SEC has not yet issued an official statement responding to Reuters’ requests for comment, the reported plans indicate a willingness within the administration to embrace innovation in securities trading, albeit with certain restrictions and exemptions tailored for the crypto environment.
Potential Impact on Markets
If implemented, the regulatory framework could broaden access to equity-like investments via crypto platforms, attracting new investors and potentially increasing market liquidity. However, it also introduces complexity regarding investor rights and regulatory oversight, factors that market participants and industry watchers will monitor closely.
As discussions continue, industry stakeholders await detailed guidance on how these tokenized securities will be regulated, traded, and integrated into the broader financial ecosystem.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Diti Pujara
© 2026 Reuters. All rights reserved.