- The SEC approved a Nasdaq rule allowing tokenized stock trading, concluding it aligns with federal law and investor protections.
- Tokenized securities must be fully fungible with traditional shares, retaining the same ticker, shareholder rights, and regulatory oversight.
- The regulator also issued joint guidance clarifying that “most crypto assets” are not securities, signaling a broader policy shift.
- Trades will settle via a designated order flag, while maintaining standard surveillance, data reporting, and settlement timelines.
On March 18, 2026, the Securities and Exchange Commission (SEC) granted approval to a landmark Nasdaq rule, permitting the trading of tokenized stocks and securities within the U.S. financial system. The regulator stated the new structure meets strict investor protection standards, specifically noting that surveillance and settlement timelines remain intact.
Under the framework, eligible participants can opt into tokenized settlement using a designated order flag for a trade. Consequently, these tokenized securities must remain fully fungible with their traditional book-entry counterparts, sharing identical identifiers and shareholder rights. Investors in tokenized shares will retain standard protections like voting rights and dividend access, ensuring consistency with existing laws.
Meanwhile, on the same Wednesday, the SEC issued joint guidance with the CFTC confirming that “most crypto assets” are not securities. These approvals reflect significant momentum for asset tokenization within regulated markets. This move allows exchanges to explore blockchain-based representations without departing from established regulatory frameworks.
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