SEC Considers Tokenized Stock Trading on Crypto Exchanges — TradFi & DeFi Merge

The U.S. Securities and Exchange Commission (SEC) is reportedly developing a framework that could allow tokenized stocks to trade on blockchain platforms, signaling a major step toward integrating traditional finance with crypto infrastructure.

In a development that could reshape capital markets, the SEC is weighing proposals to enable blockchain-registered versions of stocks to be bought and sold on crypto exchanges. This initiative, reported by multiple outlets including Cointelegraph and CoinMarketCap, marks a serious push toward tokenized equities that mirror real share ownership while leveraging blockchain’s settlement advantages. 

Under the plan, digital assets representing shares — often called stock tokens — would be backed by real securities held in custody. Trading, settlement, and reconciliation could happen directly on-chain, potentially slashing settlement time to minutes and enabling 24/7 markets. 

Supporters argue it will democratize markets, reduce overhead, and attract new capital into crypto ecosystems. Critics, however, caution about regulatory complexity, custody risk, and integration with existing infrastructure. 

In regulatory filings and internal memos, SEC staff appear aligned with trialing exemptive relief for tokenized offerings, akin to how spot Bitcoin ETFs received exemptions.  Meanwhile, firms like Coinbase and Robinhood are positioning themselves to benefit—some see it as an opportunity to expand their crypto offerings. 

If greenlit, the move could blur lines between markets, making stocks tradable via DEXs, and putting pressure on traditional exchanges to adapt. The path forward will depend heavily on how regulators address KYC/AML, custody, and securities laws.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)