SEC Readies Tokenized Stock Exemption So You Can Trade Nvidia at 3 AM Like It's BTC 🍿

The U.S. Securities and Exchange Commission is preparing a new policy that would allow crypto firms to offer tokenized stocks in the United States, according to analysts and lawyers cited by Reuters. The policy is expected to be released in the coming weeks, with SEC Chair Paul Atkins set to unveil the so-called innovation exemption, which would let crypto companies experiment with new business models without complying with all of the SEC's disclosure and investor-protection rules. Tokenized equities would let traders buy and sell shares of U.S. companies such as SpaceX, Google, and Nvidia on a 24/7 basis with transactions settled instantly.

The regulator had previously paused plans to permit tokenized equities, citing concerns about investor protection and custody requirements that had put the innovation exemption on hold. Crypto industry insiders now expect those concerns to be addressed in the forthcoming framework. The new policy arrives as multiple digital asset platforms move to expand their tokenized stock offerings to U.S. users.

Coinbase has said it plans to launch 1:1-backed tokenized stocks, with the offering already available to non-U.S. users through its existing product. Other platforms, including Binance, have also rolled out tokenized stock products aimed at giving crypto-native traders exposure to traditional equities around the clock.

Industry participants have described the exemption as a way to align U.S. rules with the 24/7 settlement model already common in crypto markets, where assets such as $BTC and $ETH trade continuously. The Commission has not yet announced a specific release date for the policy, and details on custody standards and disclosure requirements remain pending until the official publication.