“We are on the cusp of releasing what I call an ‘innovation exemption,'” Atkins said, “which will provide market participants with a cabined framework to begin facilitating the trading of tokenized securities on-chain in a compliant fashion as the Commission works toward long-term rules of the road.”

If that exemption materializes, stocks may no longer need traditional exchanges to trade. The implications stretch far beyond crypto.

What Are Tokenized Securities?

A tokenized security is a traditional financial asset — a stock, bond, or fund share represented as a digital token on a blockchain. The token carries the same legal ownership rights as its conventional counterpart, but it is…

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