US SEC Allows Tokenized Stocks for Five Years, Bringing 24-Hour Trading Closer

Announced two days after the Senate rejected the Clarity Act

Third parties that tokenize shares must notify the listed company

Crypto-linked stocks including Securitize and Robinhood jump

The US Securities and Exchange Commission on Sept. 17 announced an "innovation exemption" plan allowing tokenized stocks for the next five years. The move came two days after the US Senate voted down the Clarity Act, legislation designed to create a comprehensive oversight framework for digital assets.

The SEC's innovation exemption took effect immediately. Tokenization refers to converting real-world assets such as stocks, cash, bonds and exchange-traded funds into digital tokens, registering ownership on blockchain-based platforms and trading them there.

The scope covers not only shares listed on the New York Stock Exchange but also stocks tokenized by third parties. In such cases, however, the number of shares that can be tokenized will be capped, and tokenized securities exchanges, or TSVs, must notify the company involved. Trading is barred if the company exercises its veto within 30 days.

Synthetic tokens such as security-based swaps and wrappers, which track a stock's price but do not provide the benefits of actual share ownership, are not covered by the exemption.

The SEC said it plans to use the innovation exemption to push more aggressively toward round-the-clock stock trading. SEC Chair Paul Atkins said many people had worked on the Clarity Act, but Congress failed to pass it. The agency therefore took a significant step within its legal authority, he said. He added that tokenized stocks have the potential to enable 24-hour trading in New York equities.

Crypto-related trading platform stocks surged after the SEC announcement. Securitize jumped 14.93% to close at $8.93 in regular New York Stock Exchange trading, while Robinhood rose 5.16% to $109.81 in regular Nasdaq trading.

Nasdaq asked the SEC in September 2025 for permission to allow tokenized stock trading. Earlier this year, the New York Stock Exchange said it was building a blockchain-based tokenization platform that would allow 24-hour trading in stocks and ETFs.

Opposition remains substantial. The International Monetary Fund said in April that the benefits sought from adopting tokenization platforms could instead weaken the financial system's ability to respond properly to market risks. Because the platforms are crypto-based while real-world financial infrastructure is built around human intervention, market shock absorbers could disappear.

The IMF also said tokenization platforms operate 24 hours a day, while central-bank market intervention and regulation are designed around business hours. Financial authorities and institutions may not be able to keep up with the speed of trading on tokenization platforms, leaving too little time to respond.

Lee Mi-a, Hankyung.com reporter mia@hankyung.com