SEC Delays Plans for Tokenized Stock Trading on Crypto Platforms

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SEC Delays Plans for Tokenized Stock Trading on Crypto Platforms

The agency overseeing financial markets is expected to announce a new program this week allowing for the trading of tokenized stocks. Staff have already finished drafting and reviewing the details of the program.

The SEC is taking longer to make a decision, as it considers feedback from stock exchange officials and others involved in the market, according to a Bloomberg report on Saturday.

This rule change would have permitted the buying and selling of digital versions of stocks on exchanges that operate without permission from, or connection to, the companies whose stocks they represent.

Experts Weigh Pros And Cons

The SEC has expressed concerns about the trading of tokens not directly issued by the company. Some former regulators have pointed out that it’s uncertain whether companies can guarantee the same protections and rights for these tokens as they do for tokens traded on their own blockchains.

Bloomberg News also noted that companies publicly traded on the stock market could encounter difficulties with common activities like paying dividends to investors and tallying votes. There are also worries that these digital tokens could fall into the wrong hands internationally.

SEC Commissioner Hester Peirce recently stated that any potential exemption would be quite narrow, only allowing digital versions of stocks that investors could already buy and sell on the market.

According to Coinbase’s chief legal officer, Paul Grewal, the Securities and Exchange Commission (SEC) has done a commendable job preparing for new laws related to tokenization and has quickly used its current powers to provide clear guidance for how tokenization can be implemented in financial markets.

Thanks to @HesterPeirce. @Coinbase has consistently backed the SEC staff’s existing, well-considered feedback on tokenization.

The SEC doesn’t need new rules to allow innovation in the stock market, especially when it comes to genuine, blockchain-based digital versions of traditional stocks. They already have the power to approve these changes.

— Paul Grewal (@iampaulgrewal) May 23, 2026

Ryan Yoon, director at Tiger Research, warned that letting outside platforms trade tokenized stocks could cause problems with how easily stocks are bought and sold, and potentially reduce overall profits. He explained this could lead to different prices for the same stock on different platforms, make it harder to execute large trades smoothly, and ultimately make the market less effective.

He also warned that money normally earned by US stock exchanges could end up going to exchanges located outside the country. However, the changes could offer advantages like quicker trade processing, the ability to buy smaller portions of stocks, reduced fees, round-the-clock trading possibilities, and access to US stocks for investors outside the country.

Crypto Markets Bounce on Trump Deal

As a researcher following the crypto markets, I observed a rebound today after a dip on Saturday. This recovery seems to be linked to a recent statement by former US President Donald Trump. He posted on Truth Social that a deal has been mostly worked out – though still needing final touches – between the US, Iran, and other involved countries. It appears the market reacted positively to this news.

The agreement involves reopening the Strait of Hormuz, and the remaining details are being finalized and will be made public soon.

After falling to around $74,200 on Saturday—its lowest point in five weeks—Bitcoin‘s price recovered to over $77,000 in early trading on Sunday.

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2026-05-24 22:18