The U.S. SEC may release an "innovation exemption" rule for tokenized stocks as early as this week.

CoinFeed reported on May 19th, citing Bloomberg, that the U.S. Securities and Exchange Commission (SEC) may release an "innovation exemption" rule as early as this week for tokenized stocks, establishing a new framework for trading crypto versions of publicly traded stocks. The SEC favors allowing trading of third-party tokens not endorsed or consented to by publicly traded companies. These tokens can be traded on decentralized crypto platforms but do not necessarily have voting rights or dividends. The exemption covers tokens traded on DeFi platforms, testing whether stock trading can migrate to crypto infrastructure in the absence of traditional equity market protections. SEC Commissioner Hester Peirce is a key proponent of this exemption, but some SEC officials do not support the decision.