SEC Five-Year Exemption Opens Regulated Lane for Tokenised U.S. Stocks

The U.S. Securities and Exchange Commission (SEC) has granted a five-year exemption that creates a formal pathway for tokenised stocks representing actual U.S. shares, complete with shareholder rights such as dividends and voting entitlements. The framework explicitly favours models where tokens carry full security entitlements, whether through issuer-sponsored programmes or custodial structures, and it permits trading via automated market makers (AMMs) on public blockchains, subject to know-your-customer (KYC) controls and other guardrails.

Firms positioned to benefit include Securitize, whose chief executive Carlos Domingo called the move “extremely positive” and said it would accelerate adoption of native tokenised securities. Bullish, which is expanding into transfer agency through its acquisition of Equiniti, also welcomed the step, though its global head of tokenisation Thomas Cowan cautioned that it represents a controlled first step rather than an immediate broad opening for onchain stock markets. Market reaction was swift: Securitize shares rose 14% and Bullish shares traded 10% higher on the day.

Synthetic products that deliver only price exposure, such as those offered by Robinhood, Kraken, and Ondo, sit outside the exemption’s scope and would need product restructuring to participate in U.S. markets under this framework. An issuer veto mechanism adds a further constraint: any trading venue wishing to list a company’s tokenised stock must notify the issuer and wait 30 days, and the token cannot trade under the exemption if the issuer objects. Public blockchains including Ethereum, Solana, and BNB Chain stand to benefit from expanded activity, as do AMM platforms such as Uniswap, Aerodrome, and Raydium, provided they can implement the required access controls.