Three companies notify SEC of plans to offer tokenized stock trading

The Securities and Exchange Commission said three companies have notified the regulator of plans to run tokenized securities venues under a new rule. The SEC named Tokenized Stock Venue, Perpetuals.com and OKX in Wednesday's announcement. Crypto exchange OKX and Intercontinental Exchange were the first to file plans with the regulator for tokenized securities trading through a new platform called OKXICE.

The SEC announced in September that platforms facilitating tokenized stock trading would receive a five-year exemption. However, the SEC said on Wednesday that appearing on the list does not necessarily mean a company satisfies every requirement of the rule. Regulators, including the SEC, are advancing cryptocurrency regulation despite lawmakers blocking major digital asset legislation in September.

Companies pursuing tokenized stocks want to use the technology underlying Bitcoin to improve traditional finance. Proponents say recording stocks on a blockchain enables trading around the clock. BlackRock and Franklin Templeton have used blockchain technology for years to tokenize money funds. In January, the S&P 500 approved crypto platform Trade[XYZ] to introduce a new derivative contract on the decentralized exchange Hyperliquid. The contract enables round-the-clock trading of the stock index.

The SEC has adopted a strongly supportive stance toward cryptocurrency under U.S. President Donald Trump. SEC Chair Paul Atkins has said the regulator wants to update securities oversight for blockchain technology and crypto assets. Atkins has also said the SEC wants to put the United States on a path toward becoming the world's cryptocurrency capital.

The SEC took an adversarial approach toward the cryptocurrency industry under the previous administration of Democrat Joe Biden. The regulator sued major companies, including Coinbase and Kraken, and drew criticism for regulation by enforcement. However, the SEC's approach has changed under Trump. Trump campaigned on supporting cryptocurrency and has signed laws and executive orders intended to help the digital asset industry.