US SEC Approves 24-Hour Trading for Tokenized Stocks..."Disrupts Market"

▲ Tokenized assets, blockchain, RWA/AI generated image

The U.S. capital market has reached a regulatory turning point, entering a blockchain-based 24/7 trading system.

According to Coingape, a cryptocurrency media outlet, on September 17 (local time), the U.S. Securities and Exchange Commission (SEC) unilaterally announced an Innovation Exemption measure with a 5-year term, approving tokenized stock trading.

Under this measure, qualified Tokenized Securities Exchanges (TSVs) are largely exempt from existing stock exchange registration obligations, can provide liquidity pools for eligible participants, and can intermediate on-chain stock trading. SEC Commissioner Paul Atkins evaluated that this decision has paved the way for existing exchanges to facilitate on-chain trading in the U.S. capital market.

Regulatory authorities diagnosed that tokenization technology has the potential to modernize core market infrastructure functions such as issuance, trading, transfer, clearing, and ownership records, thereby lowering transaction costs, increasing transparency, and expanding liquidity. While it is particularly expected to contribute to improving the liquidity of assets that have been relatively illiquid, during this 5-year conditional exemption period, market operation data will be accumulated and utilized for the establishment of permanent institutional policies in the future.

Wall Street and the virtual asset industry believe that this exemption measure will accelerate the transformation of the traditional stock market into a continuous trading system, similar to the cryptocurrency market. As major financial institutions and cryptocurrency companies begin to fully adopt tokenized stock products, blockchain technology is analyzed to become the next-generation settlement and infrastructure standard for the U.S. stock market.

[Article Key Summary]

-The U.S. Securities and Exchange Commission (SEC) officially announced a 5-year Innovation Exemption measure allowing 24-hour trading of tokenized stocks.

-Tokenized Securities Exchanges can now intermediate on-chain stock trading through liquidity pools, with reduced regulatory burdens compared to traditional exchanges.

-Aimed at modernizing U.S. stock market infrastructure and expanding liquidity, data accumulated over the next 5 years is expected to be reflected in permanent institutionalization.

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