SEC Postpones Tokenized Stocks Plan
BITmarkets Team
May 26, 2026
According to a report from Bloomberg on Friday, citing sources familiar with the matter, the SEC’s proposed “innovation exemption” for crypto-based equities had been expected to launch during the week. SEC staff had reportedly already reviewed a draft framework for tokenized stock trading.
The regulator is said to have received feedback from hundreds of market participants on how such rules could be structured, though no final decision has been made regarding revisions to the proposal. Under the framework, platforms offering tokenized equities would be required to ensure investors receive the same rights as traditional shareholders, including voting privileges and dividend payments.
Ownership verification and unauthorized issuance raise concerns
Industry participants reportedly expressed concerns about the possibility of third parties issuing tokenized versions of stocks without approval from public companies. Questions were also raised over how ownership rights could be verified on semi-pseudonymous blockchain networks.
The SEC has generally shown greater openness toward crypto-related financial products during the administration of Donald Trump, a period that has coincided with growing Wall Street interest in tokenization and stablecoins.
According to data from RWA.xyz, approximately $34 billion in real-world assets have been tokenized so far, including around $1.55 billion in tokenized equities. However, adoption has remained below earlier expectations from institutions such as Citibank and McKinsey & Company, which projected tokenization could evolve into a multi-trillion-dollar market by 2030.
Crypto industry supports delay as SEC refines approach
Several crypto industry figures have welcomed the SEC’s decision to delay implementation. Carlos Domingo, CEO of tokenization platform Securitize, said in a post on X that it is important to ensure the “exemption applies to the right instruments.” “Better delay it than get it wrong and unleash all sort of problems.”
Similarly, Tom Farley, CEO of crypto exchange Bullish, commented: “...realizing that public companies are the only entity who can issue tokens that are a share of stock! Great job delaying and getting this right.”
The delay follows remarks from SEC Commissioner Hester Peirce, who indicated that any exemption would likely be “limited in scope” and initially apply only to “digital representations” of equities, similar to products already available through secondary markets.
Earlier this year, the SEC also distinguished between different forms of tokenized securities. Custodial tokenized securities refer to issuer-backed tokenized shares held through regulated intermediaries and carrying full shareholder rights. In contrast, synthetic tokenized securities provide exposure to price movements without granting ownership of the underlying asset.
The evolving discussion highlights the challenge regulators face in balancing innovation with investor protection as tokenized equities move closer to mainstream financial markets.
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