SEC readies plan for trading crypto versions of stocks, Bloomberg News reports
Quick Take
The SEC is preparing to allow trading of crypto versions of stocks, according to Bloomberg News.
Key Points
- SEC aims to regulate crypto stock trading.
- Move could enhance market accessibility.
- Potential impact on traditional stock exchanges.
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~1 min readReuters
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May 18 (Reuters) - The Trump administration plans to unveil a framework for trading tokenized or digital versions of securities, Bloomberg News reported on Monday, citing people familiar with the matter.
The U.S. Securities and Exchange Commission is expected to release an "innovation exemption" for tokenized stocks as soon as this week, the report said.
The move highlights the Trump administration's push to bring stock trading onto crypto platforms, potentially paving a new regulatory pathway for trading shares outside traditional exchanges.
Recently, the Republican-led Senate Banking Committee advanced legislation aimed at creating clearer U.S. regulations for cryptocurrencies.
According to the Bloomberg report, the SEC is leaning toward allowing trading in tokens that do not have the backing or consent of the public companies whose shares they track.
The tokens would trade on decentralized crypto platforms and may not provide traditional shareholder rights, such as voting power or dividends, the report also said.
The SEC did not immediately respond to Reuters' request for comment.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Diti Pujara)
— Originally published at finance.yahoo.com
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