SEC Prepares Tokenized Stock Rules as Onchain Market Tops $1.4 Billion

The Securities and Exchange Commission (SEC) is reportedly preparing to release its innovation exemption for tokenized stocks. The framework would open the door to trading digital versions of public company shares.

The exemption could permit third-party tokens to track share prices without the backing or consent of the public companies. That marks a sharp shift in Washington’s approach to onchain securities.

SEC Set to Unveil “Innovation Exemption” for Tokenized Stocks 

According to Bloomberg, the innovation exemption could be unveiled as early as this week. Under the framework, the tokens would trade on decentralized crypto platforms and may not provide the same shareholder benefits as traditional equities, including voting rights or dividend access.

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Tokenization has emerged as one of the crypto sector’s fastest-growing trends, with major Wall Street institutions moving swiftly to secure an early foothold in the market.

The Depository Trust & Clearing Corporation (DTCC) recently announced that it will begin facilitating limited production trades of securities tokenized through DTC’s tokenization service in July 2026. A broader rollout is planned for October 2026.

Meanwhile, in March 2026, Nasdaq revealed plans to introduce an equity token design. In January, the New York Stock Exchange announced it is developing a platform designed for the trading and on-chain settlement of tokenized securities.

Tokenized Stocks Surge 30% 

Meanwhile, the tokenized stock market has expanded sharply over the past month. Per RWA.xyz, distributed tokenized stocks now total $1.4 billion in distributed value across 2,246 assets. That figure climbed 29.68% in the past 30 days.

Monthly transfer volume has reached $3.24 billion. Meanwhile, the holder base grew 25% to roughly 265,000 over the same window.

Ondo leads the market with $883 million in tokenized equity value and a 59.77% share. By comparison, xStocks follows at $404.5 million, or 27.38%.

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