SEC Approves Tokenized Stock Trading Under Innovation Exemption

The US SEC has approved an 'Innovation Exemption' allowing for the on-chain trading of tokenized traditional US stocks. The framework requires tokenized shares to maintain rights such as dividends and voting, mandates notification to listed companies, and operates under a five-year trial. This move highlights a shift toward on-chain finance, with firms like Robinhood (HOOD) and Circle developing infrastructure to support the integration of traditional assets on the blockchain.