SEC Moves Toward Letting Stocks Trade Like Crypto: What It Means & What’s Next (2025)
The U.S. Securities and Exchange Commission (SEC) is exploring a transformation of equity markets: enabling tokenized, blockchain-registered shares and crypto-style venues with faster settlement and potentially extended hours. Here’s what that could mean for investors, brokers, and the global market.
What It Means
Shares would be mirrored as on-chain tokens recorded on a blockchain, enabling faster settlement, 24/7 trading, and transparent ownership records—much like cryptocurrencies.
Why Now?
- Modernization of outdated market systems.
- Competition from crypto-native exchanges like Coinbase and Robinhood.
- Regulatory evolution and pilot programs.
- Growing demand for global, 24/7 liquidity.
Benefits
- Faster settlement and reduced counterparty risk.
- Lower transaction fees and simpler market infrastructure.
- Programmable assets enabling automation and compliance.
Risks & Challenges
Tokenization introduces governance, legal, and technical risks. Investor protection, market integrity, and smart contract vulnerabilities remain major concerns.
Status in 2025
The SEC’s initiative is exploratory. Expect pilot projects, limited exemptions, and consultation before major regulatory rollout.
Implications
This shift could reshape global finance—bridging Wall Street and blockchain. Legacy brokers may evolve, while retail investors gain greater flexibility and transparency.
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