Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Regulation and Innovation: SEC Considers the Future of Tokenized Stocks

Regulation and Innovation: SEC Considers the Future of Tokenized Stocks

Bitget-RWA2025/11/30 11:34
By:Bitget-RWA

- Nasdaq proposes blockchain integration for tokenized stocks, seeking coexistence with traditional shares under SEC-regulated frameworks. - WFE warns against crypto platforms bypassing safeguards, urging equal protections for tokenized equities to prevent reputational risks. - SEC's December 4 advisory committee meeting will assess Nasdaq's model, which aligns tokenized shares with existing CUSIP identifiers and NMS rules. - Regulatory outcomes could reshape market dominance: leniency empowers crypto firm

Nasdaq Champions Blockchain Integration in Equity Markets

Nasdaq is spearheading a transformative effort to merge blockchain technology with established financial markets, aiming to lead a new era in equity trading. The exchange is advocating for a regulated environment where tokenized stocks can operate alongside traditional shares, with a strong focus on compliance and safeguarding investors. This initiative reflects a broader movement within the financial industry, as both legacy institutions and blockchain-based platforms strive to upgrade their systems through digital assets. Despite these ambitions, the journey is complicated by intense regulatory examination, especially as the U.S. Securities and Exchange Commission (SEC) considers proposals that could either foster or restrict progress in the realm of tokenized securities.

Regulatory Standards and Industry Advocacy

The World Federation of Exchanges (WFE), which includes Nasdaq and other major players such as Germany’s Deutsche Boerse, has been a vocal proponent of upholding current regulatory frameworks. In a letter sent to the SEC on November 21, the WFE cautioned against permitting unregistered crypto exchanges to circumvent established investor protections. The organization stressed that tokenized stocks must be subject to the same regulations as conventional securities to avoid reputational damage and protect investors. WFE CEO Nandini Sukumar highlighted concerns that exempting crypto platforms from registration could result in products that resemble equities but lack the necessary rights and safeguards.

Upcoming SEC Deliberations

The conversation is gaining momentum as the SEC prepares for a pivotal Investor Advisory Committee meeting on December 4. This session will explore how tokenized stocks might fit within the current regulatory landscape, with Nasdaq’s proposal serving as a central example. The exchange has formally requested a rule change to permit trading of tokenized shares alongside traditional ones, ensuring both share the same CUSIP identifiers and regulatory oversight. This strategy is designed to maintain the integrity of the national market system (Regulation NMS) while harnessing blockchain technology to accelerate settlement processes.

Nasdaq Blockchain Integration

Nasdaq’s vision is to have tokenized equities governed by the same legal and operational standards as their traditional counterparts, with blockchain functioning as a secure, transparent ledger behind the scenes rather than disrupting existing systems.

Implications for the Future of Capital Markets

The SEC’s forthcoming decision on tokenized stocks is expected to have significant consequences. If unregistered crypto platforms are permitted to participate, it could enable blockchain-native companies to directly challenge established exchanges, potentially diminishing their market share. On the other hand, maintaining strict regulatory requirements may slow the adoption of tokenized assets but help preserve market stability. As the December 4 meeting draws near, industry observers are watching closely to see how regulators will strike a balance between fostering innovation and ensuring robust oversight—a decision that will influence the evolution of capital markets for years to come.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Saudi Arabia's Vision 2030 Encounters Houthi Challenges Amidst Growth in Trade and Technology

- Saudi Arabia strengthens regional trade ties with Egypt, aiming to boost 86% of Egyptian firms' trade under Vision 2030, focusing on tech and energy sectors. - Chinese aesthetic tech firm Aphranel showcases innovations at Saudi medical congress, highlighting growing Middle East market integration. - Houthi threats in Yemen persist, raising regional security risks that could hinder Saudi economic ambitions and foreign investment goals. - Saudi-Egyptian investment agreements aim to enhance legal frameworks

Bitget-RWA2025/11/30 16:44
Saudi Arabia's Vision 2030 Encounters Houthi Challenges Amidst Growth in Trade and Technology

"Retail's Digital Revolution: Black Friday's 9.1% Online Spike Signals New Consumer Era" <div>Retail's Digital Revolution: Black Friday's 9.1% Online Spike Signals New Consumer Era</div> 改写: <div>The Digital Shift in Retail: Black Friday Sees 9.1% Surge in Online Sales, Marking a New Age for Shoppers</div>

- U.S. online Black Friday spending hit $11.8B in 2025, a 9.1% surge driven by AI tools and social media campaigns. - In-store traffic fell 3.6% as shoppers spread purchases across extended promotions, while tariffs pushed average prices up 7% despite 1% lower order volumes. - Holiday sales are projected to reach $1.01-$1.02 trillion, reflecting a 3.7-4.2% growth but slower than 2023's 4.3% increase. - Scams targeted 31% of U.S. adults, while grassroots boycotts against Trump-linked retailers emerged, thou

Bitget-RWA2025/11/30 16:44
"Retail's Digital Revolution: Black Friday's 9.1% Online Spike Signals New Consumer Era"

<div>Retail's Digital Revolution: Black Friday's 9.1% Online Spike Signals New Consumer Era</div>

改写:

<div>The Digital Shift in Retail: Black Friday Sees 9.1% Surge in Online Sales, Marking a New Age for Shoppers</div>

Bitcoin News Today: Surging Institutional Interest Pushes BlackRock’s Bitcoin ETF to $70 Billion

- BlackRock's IBIT bitcoin ETF surged to $70.7B in 341 days, generating $245M annual fees as top revenue driver. - U.S. spot bitcoin ETF approval fueled institutional demand, with IBIT capturing 3% of total bitcoin supply. - BlackRock increased its own IBIT stake by 14%, despite $2.34B November outflows deemed "normal" for retail-driven products. - ETF resilience shown through $21.1M November 27 inflow, reinforcing bitcoin's strategic role amid macroeconomic uncertainties.

Bitget-RWA2025/11/30 16:44

Hyperliquid News Today: Hayes-Hon Dispute Highlights the Rift Between Crypto Fundamentals and Market Hype

- Monad's MON token collapsed 40% in three days, triggering $6M+ liquidations on HyperLiquid as high-FDV projects face volatility risks. - Arthur Hayes criticized MON's 90% locked supply as a "hot potato" scheme, while founder Keone Hon defended its C++/Rust architecture and 1-second finality. - Whale wallets lost $1.9M-$4.17M in leveraged positions, highlighting systemic risks in low-liquidity tokens amid spoofed transfers and declining trading volume. - The debate underscores crypto's infrastructure vs.

Bitget-RWA2025/11/30 16:28
Hyperliquid News Today: Hayes-Hon Dispute Highlights the Rift Between Crypto Fundamentals and Market Hype