Token shares could be exempt from the SEC as early as this week, opening a regulated path for digital versions of publicly listed securities to trade on decentralized cryptocurrency platforms. The exemption has been in development since SEC Chairman Paul Atkins launched Project Crypto in July 2025 and told the Economic Club of Washington on April 21 that the agency was “on the cusp” of launching it.
The Depository Trust & Clearing Corporation (DTCC), which clears and clears nearly all equity transactions in the US, will begin conducting token asset trading in its sandbox in July, with another rollout scheduled for October.
In December 2025, the SEC’s Division of Trading and Markets filed a No-action letter to DTCC allowing for the pilot program. The pilot program includes stocks and exchange-traded securities that hold their underlying assets in a DTCC custody system.
What the exemption actually allows
This exemption allows eligible companies up to three years to operate within reduced regulatory requirements. In those three years, they will be able to issue and transact security token offerings while being exempt from full registration with the SEC, provided they follow certain size and participant restrictions.
At the end of that period, the project either proves that it is decentralized enough to fall under the supervision of the CFTC or submits an application for full registration with the Securities and Exchange Commission (SEC).
“A stock is still a stock, whether represented on paper, through a DTCC entry, or as a blockchain token,” Atkins said. He said in a previous press conference. He also indicated his support for allowing automated market makers and decentralized protocols to participate.
“In my view, market participants should be able to transact decentralized applications on permissionless public blockchains if they wish.” he told an ETHDenver audience in February.
Securities and Exchange Commission January 28, 2026 Joint Staff Statement Separating issuer-sponsored token securities, which hold real shares, from third-party synthetic products that give their holders exposure to the stock price without conferring any ownership rights or voting power.
The Nasdaq, New York Stock Exchange, and others are building bars before the rule is dropped
Nasdaq is working on a blockchain-based stock issuance platform that does not negate the ownership benefits associated with traditional stocks. In turn, the NYSE plans to introduce a new rule that will allow tokenized stocks and ETFs to be traded and settled on the blockchain network 24 hours a day via its platform.
like Reported by Cryptopolitan Two weeks ago, the NYSE initiative necessitated the introduction of new Rule 7.50 and the modification of certain rules related to order display, classification, execution, routing and settlement.
Native cryptocurrency platforms aren’t standing still either. according to ClusterKraken’s xStock offering has generated trading volume of over $25 billion to date. Robinhood’s real assets blockchain recorded more than 4 million trades in its first week alone.
Securitize brought regulated stock trading on the blockchain in late 2025 with real ownership of shares on the issuing company’s ledger. Kraken has started trading token shares. tZERO, backed by InterContinental Exchange, is preparing for an IPO.
Not everyone wants this to happen so quickly
Commissioner Hester Peirce, who leads the SEC’s cryptocurrency task force, tempered expectations at ETHDenver in February.
Both groups are likely to realize that the innovation exemption is not as massive as either faction expected. It will be an important step towards making it easier to integrate tokenized securities into our existing financial system, but it will not change the entire financial system overnight.
– Hester Pierce
She was referring to cryptocurrency advocates who expect the rule to bypass SEC oversight entirely, and traditional financial players who fear it will eliminate investor protections.
Last July, Citadel Securities wrote a letter to the Securities and Exchange Commission, calling for regulation to be put in place before launching tokenized securities, as shortcuts could lead to potential regulatory loopholes and hurt the IPO market.
According to the World Federation of Exchanges, which consists of Nasdaq and the CME Group, such broad exceptions would threaten the principle of investor protection and provide an advantage over regulated exchanges.
There is still an open issue as to whether atomic settlement on the blockchain conflicts with current SEC rules regarding T+1 settlement of standard transactions.
Token issuances of real assets reached $27 billion by April 2026, an 85 percent increase over the previous year, with institutional investors offsetting most of the gains. What is missing now is regulatory clarity in the United States. With this new exemption, everything will fall into place.
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