The US Securities and Exchange Commission (SEC) is reportedly preparing to roll out a new framework for trading token stocks on decentralized cryptocurrency platforms.
Bloomberg, citing people familiar with the matter Reports The SEC is expected to issue a so-called innovation exemption for tokenized shares as early as this week.
The regulator is also likely to give the green light to the trading of token public company shares that do not have the approval or support of the issuer.
Tokenizing real-world assets involves creating blockchain-based versions of assets such as stocks and bonds, which can be traded around the clock. The SEC classifies tokenized securities as either those that have been tokenized by or on behalf of issuers and those that have been tokenized by third parties.
These “third-party” tokens will effectively provide a new way to speculate on the direction of stock prices but may not carry the same benefits associated with common stock such as voting rights and dividends.
The report says that under the SEC’s proposal, platforms that cannot provide the benefits of common stock would lose the right to list tokens. Agency officials are still working on the exemption, and details may change before it is issued.
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