SEC plans regulatory path for 24/7 tokenized stocks - Crypto News

The U.S. Securities and Exchange Commission is reportedly exploring a regulatory framework that would accommodate tokenized stocks trading on a 24/7 basis. This move acknowledges the growing intersection of traditional equity markets with blockchain-based infrastructure. By establishing a clearer legal pathway, the SEC aims to provide oversight for assets that currently exist in a gray area, potentially addressing custody, disclosure, and settlement standards specific to digital representations of securities.

For markets, the implications are significant. Around-the-clock trading would challenge the conventional 9-to-5 session model, demanding new considerations for price discovery, clearing, and risk management. Tokenization could broaden access and streamline settlement, but it also raises questions about volatility during non-standard hours and cross-border regulatory consistency.

Investors should watch for formal proposal details, particularly how the SEC defines a "tokenized stock" and whether existing exchange rules would be adapted or replaced. Coordination with self-regulatory organizations and state authorities will also be critical. The path remains early, but the signal is clear: regulators are moving beyond pilot programs toward integration of blockchain-based equities into the broader financial system.