SEC Innovation Exemption Could Accelerate Tokenized Stock Trading

The US Securities and Exchange Commission (SEC) is reportedly preparing to introduce a new “innovation exemption” framework that could significantly expand the market for tokenized stocks. According to Bloomberg, the proposal may be released as early as this week and would allow blockchain-based trading platforms to offer digital versions of publicly traded shares.

The exemption is expected to mark a major policy shift for onchain securities in the United States. Under the proposed framework, third-party issuers could create tokens that mirror the price performance of public company stocks without requiring approval or direct backing from the companies themselves. However, these tokenized stocks may not provide investors with traditional shareholder rights such as voting privileges or dividend payments.

The development highlights the growing momentum behind real-world asset (RWA) tokenization, one of the fastest-expanding sectors in crypto. Major financial institutions and market infrastructure providers are increasingly moving toward blockchain-based securities trading and settlement systems.

The Depository Trust & Clearing Corporation (DTCC) recently confirmed plans to begin limited production trading of tokenized securities through DTC’s tokenization platform in July 2026, with a broader launch expected in October. Earlier this year, Nasdaq revealed plans for an equity token design, while the New York Stock Exchange announced work on a dedicated platform for tokenized securities and onchain settlement.

Data from RWA.xyz shows the tokenized stock market has surged in recent weeks. Distributed tokenized equities now represent approximately $1.4 billion in value across more than 2,200 assets, reflecting nearly 30% growth over the past month. Monthly transfer volume climbed to $3.24 billion, while the number of holders increased 25% to around 265,000 users.

Ondo currently dominates the sector with roughly $883 million in tokenized equity value and nearly 60% market share. xStocks follows with approximately $404.5 million, representing over 27% of the market.