SEC Preparing Framework for Trading Crypto Versions of Stocks, Bloomberg Reports
May 18, 2026 – Reuters
The U.S. Securities and Exchange Commission (SEC) is reportedly gearing up to introduce a groundbreaking regulatory framework to facilitate the trading of tokenized or digital versions of securities. According to a Bloomberg News report citing sources familiar with the matter, the SEC plans to unveil an "innovation exemption" that would allow for the trading of crypto-based representations of stocks, potentially as early as this week.
This initiative comes as part of the Trump administration’s broader push to integrate stock trading with cryptocurrency platforms, aiming to create new regulatory avenues for trading shares beyond traditional stock exchanges. The move signals a significant shift in financial markets, embracing decentralized finance technologies and digital asset innovation.
The Republican-led Senate Banking Committee has recently advanced legislation designed to establish clearer regulations for cryptocurrencies in the U.S., reflecting growing bipartisan interest in modernizing the regulatory landscape around digital assets.
According to the Bloomberg report, the SEC is contemplating allowing trading in tokenized stocks that may not have the official backing or permission of the public companies whose shares they represent. These tokenized stocks would be traded on decentralized crypto platforms and might lack certain traditional shareholder rights, such as voting privileges or entitlement to dividends.
While this approach could broaden access and liquidity for investors through crypto channels, it also raises questions about investor protections and corporate governance. The SEC has not yet responded to requests for comment on the forthcoming framework.
This development highlights ongoing efforts by regulators and lawmakers to adapt to the rapidly evolving intersection of traditional finance and blockchain technology, potentially reshaping how securities are issued, bought, and sold in the digital age.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Diti Pujara