The U.S. Securities and Exchange Commission’s recent trial with tokenized equities could provide an initial advantage to a distinct sector of the crypto industry: entities that place actual securities onto distributed ledgers alongside decentralized cryptocurrency networks designed to handle them compliantly.
The regulator’s new framework shows preference toward tokens that reflect genuine U.S. equities and incorporate all standard privileges of traditional equities, such as dividend distribution and voting rights.
This core concept forms the basis of the latest regulatory waiver. Carlos Domingo, CEO of digital asset and real-world asset tokenization provider Securitize, remarked to CoinDesk that this development is remarkably encouraging because it establishes a mechanism to trade authentic tokenized shares.
Consequently, multiple tokenization architectures remain viable—ranging from issuer-driven initiatives to custodial frameworks—while synthetic instruments offering solely price tracking are excluded. This dynamic could potentially advantage firms collaborating directly with underlying corporations, custodial structures maintaining complete equity entitlements, and transfer agents over networks merely generating equity-associated instruments.
Additionally, the commission introduces a separate pathway on the execution front.
Tokenized shares can change hands via automated market makers operating on public blockchains, bringing decentralized finance protocols closer to domestic securities exchanges. Nevertheless, regardless of the trading venue utilized, transactions mandate restricted access through identity verification, volume limits, and compliance with supplementary regulatory safeguards.
Real shares coming onchain
Securitize chief executive Domingo characterized the regulatory agency’s initiative as powerful validation for tokenized equities that mirror the authentic underlying asset or a comprehensive security entitlement.
He further noted that the regulatory structure strengthens the argument for issuer-sponsored asset tokenization and will expedite the uptake of natively tokenized securities.
Bullish, the parent company of CoinDesk, is likewise scaling up its tokenization operations via the acquisition of transfer agent Equiniti. Thomas Cowan, global head of tokenization at Bullish, described the initiative as a step in the correct direction.
Cowan noted that the action demonstrates regulators actively evaluating how to facilitate automated market makers and novel market architectures.
Even so, Cowan warned that the exception should be interpreted as an initial regulated trial rather than the immediate debut of a comprehensive onchain equity exchange.
He emphasized that it certainly does not represent the wide-scale opening the digital asset community anticipated for immediate tokenized stock expansion, but it remains an exceptional starting point for the future trajectory of capital markets and potential capabilities.
Securitize equity values climbed 14% while Bullish shares traded up 10% on Thursday.
Companies get a veto
The regulatory body also grants public corporations a voice whenever an unrelated third party tokenizes their equity instruments.
Prior to the initiation of any corporate tokenized equity trading, the execution venue must inform the issuer and observe a 30-day waiting period. Should the corporation dispute the arrangement, the token is barred from trading under the waiver provision.
Fairmint co-founder and CEO Joris Delanoue stated that the issuer veto functions as the primary protective measure.
This policy arrives in the wake of a public controversy during the summer when AMC Entertainment CEO Adam Aron criticized Robinhood for issuing AMC-tied equity tokens without corporate participation.
Third-party custodial systems can still operate within the parameters provided the token retains the privileges tied to the underlying equity and the issuer raises no objection.
No synthetic tokens
Synthetic instruments that merely mirror equity pricing without retaining equivalent rights fail to qualify for the regulatory exception.
Dinari CEO Gabo Otte stated that the commission is establishing a crucial boundary regarding the true nature of tokenized equities, noting that placing shares onchain should not strip away the core rights that define them as stocks.
This stance places potential pressure on offshore equity-token offerings such as Robinhood’s Stock Tokens, Kraken’s xStocks, and Ondo Finance’s international variants, which supply investors with domestic equity price exposure without granting direct shareholder status in the issuing entities.
Such structural models would require modification if providers intend to leverage the SEC’s fresh domestic channel.
Despite this, Johann Kerbrat, head of crypto at Robinhood, praised the agency’s maneuver.
Kerbrat stated that the regulatory innovation waiver signals tokenization’s readiness for domestic integration, marking a significant milestone by the commission that will enable liquid tokenized security markets to establish themselves onshore.
Robinhood equities advanced roughly 2.8% on Thursday.
A regulated lane for DeFi
Another potentially major opening applies to regulated decentralized trading networks.
Under the terms of the waiver, tokenized security venues may utilize automated market makers to exchange tokenized domestic equities without undergoing traditional securities exchange registration. Meanwhile, centralized crypto exchanges like Coinbase and Kraken may operate outside this regulatory architecture. Coinbase shares increased around 5% on Thursday, while Kraken remains privately held.
Grayscale head of research Zach Pandl observed that the development could drive elevated utility toward the underlying distributed ledgers and decentralized exchange applications supporting these markets.
Pandl noted that the innovation exemption will expand tokenized asset utility, benefiting participants, leading public networks including Ethereum, Solana, and BNB Chain, alongside decentralized trading protocols like Uniswap, Aerodrome, and Raydium.
Although the technology can operate on public, permissionless ledgers, market access itself must remain governed. Practically speaking, this structure could gradually forge a compliant variant of decentralized finance tailored for domestic securities, leveraging established crypto trading infrastructure supplemented by identity verification, volume caps, and strict market oversight.
Domingo predicted that all decentralized finance automated market makers will introduce offerings, creating numerous onchain liquidity hubs for these assets.
The ease with which established decentralized finance protocols can capitalize on the framework remains uncertain.
Dromos Labs chief legal officer Jim Petrila—whose firm develops Aerodrome and Velodrome—noted that the regulatory exemption serves as a constructive, positively oriented signal for decentralized finance, demonstrating the agency’s commitment to defining how tokenization integrates into domestic markets.
Petrila added that fully decentralized or permissionless exchanges might find it practically challenging to leverage the exemption due to mandatory gating requirements, which necessitate permissioned infrastructure layered over true decentralized finance, suggesting that asset approval requirements and gating could result in modest initial adoption even among centralized operators.
Currently, the commission is maintaining a deliberately restricted scope for the trial. Trading venues encounter limitations concerning both the volume of equities eligible for trade and their proportion of total transaction volume, and all market participants must be authorized.
Nevertheless, the established framework grants entities an unprecedented asset: a clearly defined domestic pathway for transacting genuine tokenized equities across public blockchains, accompanied by a likely influx of product iterations seeking alignment with the new guidelines.
Superstate CEO Robert Leshner, whose organization provides issuer-sponsored tokenization, expects issuers to re-evaluate offerings to align with these mandates over the coming weeks and months, leading to the creation and deployment of novel products.
Originally published at https://www.coindesk.com/business/2026/09/17/sec-opens-door-to-tokenized-u-s-stock-trading-here-s-who-could-benefit.
