TLDR
- The SEC is preparing an “innovation exemption” that could allow blockchain-based trading of tokenized stocks as early as this week.
- Third-party platforms may be allowed to tokenize public company shares — even without the companies’ consent.
- Major Wall Street players including DTCC, Nasdaq, and NYSE parent ICE are already building tokenized securities infrastructure.
- Securitize president Brett Redfearn warned the move could create fragmentation and leave investors uncertain about share values.
- Several SEC officials oppose the exemption, and the CLARITY Act is advancing in the Senate ahead of a full floor vote.
The SEC is moving toward a major rule change that could allow stocks to trade on blockchain platforms. The agency is reportedly preparing an “innovation exemption” for tokenized securities, which could be announced as early as this week.
For people freaking out about “third party” tokens…
I would encourage you to read this part closely.
“Under the SEC’s proposal, platforms that fail to provide those benefits would lose the right to list the tokens.”
See where this is all heading yet? pic.twitter.com/WDV5ERNjcu
— Nate Geraci (@NateGeraci) May 18, 2026
Under the plan, third-party platforms could create digital versions of publicly traded company shares — even without those companies’ approval. These tokenized stocks would need to carry the same rights as regular shares, including voting rights and dividends, or risk being delisted.
SEC Commissioner Hester Peirce led the push for the exemption, according to people familiar with the matter. Details have not been finalized and could still change.
Wall Street Moves In
Several major financial institutions are already preparing for a tokenized securities market.
The Depository Trust and Clearing Corporation, known as DTCC, plans to begin limited production trades of tokenized assets in July, with a broader rollout in October. The system would back tokenized stocks and ETFs with assets already held within DTCC’s existing infrastructure.
Nasdaq is developing a framework for companies to issue blockchain-based shares while preserving traditional ownership rights. The SEC approved Nasdaq’s tokenized securities plan in March.
Intercontinental Exchange, the parent company of the New York Stock Exchange, has also unveiled plans to expand into tokenized stocks through a partnership with crypto exchange OKX. ICE announced in January it would build a platform for 24-hour trading and settlement using blockchain.
Crypto exchange Bullish, led by former NYSE president Tom Farley, acquired transfer agent platform Equiniti for $4.2 billion earlier this month, strengthening its tokenization capabilities.
Pushback From Inside and Outside the SEC
Not everyone is on board with the plan.
Several SEC officials do not support the decision, according to sources. The agency did not respond to a request for comment.
Brett Redfearn, president of tokenization platform Securitize, raised concerns about allowing third parties to tokenize stocks without the issuing company at the table. He warned the approach could lead to fragmentation and leave investors unclear on what their shares are actually worth.
Some private companies have also pushed back. OpenAI and Anthropic have both opposed unauthorized tokenized stocks tracking their valuations in the pre-IPO market.
What the Exemption Could Mean
Supporters of tokenized trading say the technology could open up US markets to individuals who lack access to traditional brokerage accounts. Companies like Nvidia, Google, and Tesla have been mentioned as examples of stocks that could benefit from broader global access through tokenization.
SEC Chair Paul Atkins has said current securities rules do not fit blockchain-based systems that combine exchange, clearing, and settlement into a single protocol. He has called for formal rulemaking rather than enforcement-led guidance.
The tokenization push comes as the Senate Banking Committee advanced the CLARITY Act last week, setting it up for a full Senate floor vote next month. Investor Kevin O’Leary and others have said Wall Street will not fully commit to tokenization without a clear legal framework in place.
