--- title: "Report: US SEC to Launch Stock \"Tokenization\" Trading Scheme, Potentially Without Listed Companies' Consent" type: "News" locale: "en" url: "https://longbridge.com/en/news/286828774.md" description: "The US Securities and Exchange Commission plans to introduce a regulatory exemption framework for tokenized stocks, allowing third parties to issue digital tokens that track stock prices without authorization from listed companies, with circulation on DeFi platforms. This policy is driven by Commissioner Hester Peirce and represents a significant move by the Trump administration to loosen crypto regulations. However, the industry has expressed strong concerns about risks such as market fragmentation and weakened investor protection mechanisms" datetime: "2026-05-18T23:36:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286828774.md) - [en](https://longbridge.com/en/news/286828774.md) - [zh-HK](https://longbridge.com/zh-HK/news/286828774.md) --- # Report: US SEC to Launch Stock "Tokenization" Trading Scheme, Potentially Without Listed Companies' Consent The US Securities and Exchange Commission (SEC) is preparing to introduce a regulatory exemption framework for tokenized stocks, a move that could fundamentally reshape the landscape of the US stock market. On May 18, Bloomberg cited insiders revealing that the US Securities and Exchange Commission **is expected to officially release the aforementioned "innovation exemption" policy as early as this week, creating a new channel for investors to trade US stocks via digital tokens.** According to reports, the US Securities and Exchange Commission (SEC) is inclined to allow the trading of "third-party" tokens. **These tokens are essentially synthetic instruments that track stock prices and can circulate on decentralized crypto platforms even without authorization from listed companies, but they do not necessarily carry the voting or dividend rights of common shares.** This move will become one of the most significant regulatory experiments since the Trump administration began pushing for deregulation in the crypto sector. Notably, there are divisions within the US Securities and Exchange Commission regarding the decision to allow third-party tokenized stock trading, with some officials explicitly expressing opposition. ## Exemption Framework: Allowing Token Trading Without Issuer Consent According to The Wall Street Journal, the US Securities and Exchange Commission has categorized tokenized securities into two types: securities tokenized by the issuer or on behalf of the issuer, and securities tokenized by third parties with no direct affiliation to the issuer. **The core point of contention in this exemption policy is precisely the second category—third-party tokenized securities.** These instruments allow any third party to issue digital tokens tracking the stock prices of listed companies such as Apple and Amazon without their consent, and to circulate them freely on decentralized finance (DeFi) platforms. DeFi is a segment of the crypto market worth approximately $130 billion, where investors conduct transactions, lending, and other operations through protocols running on automated code with minimal human intervention. **The core force driving this exemption mainly comes from Commissioner Hester Peirce, a long-time ally of US Securities and Exchange Commission Chairman Paul Atkins.** Peirce raised a series of questions at the US Securities and Exchange Commission meeting in March this year, including whether the exemption policy should "require third parties to obtain the issuer's consent before tokenizing existing equity securities." Atkins promised to usher in a "new era" for the agency upon taking charge of the US Securities and Exchange Commission, ending the so-called "regulation by enforcement" in the crypto sector, and began promoting the concept of "innovation exemptions" early in his tenure. **However, in recent months, both Atkins and Peirce have worked to lower market expectations, characterizing any potential exemptions as limited in scope and gradual measures.** Peirce stated in February this year: > This will be an important step in integrating tokenized securities into the existing financial system, but it will not change the entire financial system overnight. A spokesperson for the US Securities and Exchange Commission stated that the agency has met with hundreds of market participants and widely solicited opinions on how to calibrate new trading rules. Currently, details are still under discussion, and the final plan may still be adjusted before release. ## Industry Layout: Exchanges and Crypto Platforms Accelerate Positioning **The regulatory loosening for tokenized stocks is driving traditional financial institutions and crypto platforms to accelerate their layout simultaneously.** Earlier this month, Bullish, a crypto exchange led by former New York Stock Exchange President Tom Farley, spent $4.2 billion to acquire the transfer agent Equiniti. Transfer agents are responsible for tracking stock ownership records and assisting with dividend distributions, serving as an important component of stock market infrastructure. **Meanwhile**, the New York Stock Exchange is leveraging blockchain technology to build a new platform for trading tokenized stocks and ETFs; Nasdaq stated that it is developing a token design scheme aimed at giving listed companies greater control over their tokenized stocks. **At the legislative level**, last week, the US Senate Banking Committee advanced a landmark digital asset market structure bill—the "Clarity Act." **This bill will establish the Commodity Futures Trading Commission (CFTC) as the primary regulator for most areas of the crypto industry, while retaining the US Securities and Exchange Commission's regulatory authority over digital securities.** ## Risks of Market Fragmentation Trigger Warnings from Multiple Parties Although supporters argue that tokenization technology helps achieve near-instant settlement and round-the-clock trading, thereby enhancing market efficiency, concerns from the industry and within the US Securities and Exchange Commission cannot be ignored. Brett Redfearn, President of Securitize, a tokenization company, and former Director of the SEC's Division of Trading and Markets, pointed out: > If third parties can tokenize Apple or Amazon in the absence of the issuer, **then theoretically there is no limit to the number of 'wrapped versions' of the same company. This could create a new layer of market fragmentation, making it difficult for investors to determine the true value of the stocks they hold at any given moment.** In an article last December, the Securities Industry and Financial Markets Association (SIFMA) warned that the tokenized market might lack basic requirements such as market interoperability and price transparency, posing a risk of market "fragmentation and descent into disorder." Heavyweight industry institutions such as Citadel and SIFMA have also pressured the US Securities and Exchange Commission, warning that broad exemption policies could weaken Know Your Customer (KYC), Anti-Money Laundering (AML), and other investor protection mechanisms. **In its submission last December, Citadel explicitly stated that no exemption should supersede core market safeguards.** ### Related Stocks - [MARA.US](https://longbridge.com/en/quote/MARA.US.md) - [RIOT.US](https://longbridge.com/en/quote/RIOT.US.md) - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [BITF.US](https://longbridge.com/en/quote/BITF.US.md) - [BKKT.US](https://longbridge.com/en/quote/BKKT.US.md) - [BTDR.US](https://longbridge.com/en/quote/BTDR.US.md) - [SQ.US](https://longbridge.com/en/quote/SQ.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [HUT.US](https://longbridge.com/en/quote/HUT.US.md) - [ABTC.US](https://longbridge.com/en/quote/ABTC.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [HODL.US](https://longbridge.com/en/quote/HODL.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [BLCN.US](https://longbridge.com/en/quote/BLCN.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) - [IBIT.US](https://longbridge.com/en/quote/IBIT.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [BLSH.US](https://longbridge.com/en/quote/BLSH.US.md) - [EQN.UK](https://longbridge.com/en/quote/EQN.UK.md) - [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md) ## Related News & Research - [Trump Family Wealth Reportedly Gets $660M Boost From Undisclosed Crypto Token Sales](https://longbridge.com/en/news/286801597.md) - [THORChain Price Outlook: Panic or Opportunity After RUNE Crashes 30%?](https://longbridge.com/en/news/286643134.md) - [SEC plans 'innovation exemption' for tokenized stock trading amid mixed reactions. 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