BlockBeats News, May 19th, according to Bloomberg, the U.S. SEC is set to launch this week a "Innovation Exemption" policy for tokenized stocks, creating a new framework for on-chain trading of digital securities. The SEC is leaning towards allowing third parties to issue tokens pegged to stock prices without the authorization or consent of the underlying companies, and to be traded on DeFi platforms. The report stated that these third-party tokens are essentially synthetic assets tracking stock prices, and some products may not have the same voting rights or dividends as regular stocks. According to the SEC proposal, if the platforms fail to offer these rights, they will lose eligibility to list such tokens.

This initiative is seen as the first large-scale test of U.S. regulation to migrate stock trading to crypto infrastructure. Proponents believe that tokenized securities can achieve near real-time settlement and 24/7 trading, improving market efficiency; while opponents are concerned about market fragmentation, decreased price transparency, as well as weakened KYC and AML protections.

Currently, institutions such as the NYSE, Nasdaq, and Bullish have all entered the tokenized stock market. Previously, the U.S. Senate Banking Committee also advanced the Digital Asset Market Structure and Investor Protection Act known as the "Clarity Act."