The US Securities and Exchange Commission has postponed a planned “innovation exemption” for tokenized issues of US stocks, citing concerns from market participants.
Citing people familiar with the matter, Bloomberg reported that the draft framework, scheduled for release early this week, is now facing delays while the agency reviews comments.
The Securities and Exchange Commission is delaying a plan to allow cryptocurrency issues of US stocks
This exemption is intended to allow cryptocurrency companies and DeFi platforms to trade blockchain-based representations of stocks like Apple or Tesla.
It promised 24/7 trading, faster settlement, and easier fractional ownership while keeping the tokens classified as securities.
Stock exchange officials and industry players It is said It raised alarms about potential liquidity fragmentation.
Critics worry that parallel cryptocurrency markets could decouple trading volume from traditional exchanges, hurting price discovery and efficiency.
Investor protection remains a key issue, especially for third-party tokens issued without company approval, which may lack full voting or dividend rights.
Market context and momentum
Tokenized real world assets (RWAs) have soared to over $34 billion, up 1,600% in two years, with tokenized stocks alone surpassing $1 billion in market capitalization.
Ethereum leads the platforms, followed by Solana. BlackRock’s BUIDL Fund and similar products show strong institutional interest in on-chain assets.
under SEC Chairman Paul AtkinsThe agency consulted hundreds of participants to achieve a balance between innovation and safeguards. The delay reflects caution even in a more favorable regulatory environment for cryptocurrencies.
No new timeline has been announced, but the framework remains under active review. A revised version could still be rolled out later this year, which could reshape US stock trading.
This pause highlights the tension between continued cryptocurrency innovation and established market stability, key dynamics for anyone exposed to stocks or digital assets.
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