SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading

The SEC issued a five-year Innovation Exemption allowing trading venues to issue tokenized versions of US stocks. Token holders will get the same rights as ordinary shareholders, including dividends and voting, and companies can prohibit tokenization of their shares.

• The exemption lasts five years and introduces trading volume limits
• A company is notified 30 days in advance and can prohibit tokenization
• The measure was adopted two days after the Clarity Act failed in the Senate
• Robinhood, Coinbase and Kraken already offer token stocks abroad