Stock Market

Story: SEC Eyes Tokenized Equity Exemption as Senate Crypto Vote Hangs in the Balance

By Sydney TheCMO

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What the SEC's Framework Actually Does. The core idea from the SEC is pretty straightforward: putting a stock on a blockchain doesn't…

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Who's Winning the Tokenized Stock Race Right Now. Ondo, running on Ethereum, holds roughly 60% of the on-chain stock market.

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The Senate Math Is the Real Problem. The Clarity Act needs 60 votes to advance. Republicans hold 43 seats, which means at least 17…

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The SEC is getting ready to roll out an "innovation exemption" framework for tokenized stock trading.

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The timing isn't accidental. The tokenized equity market already sits at $33.7 billion in distributed value, up 21% over just the past month. Monthly transfer volume hit $3.

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The core idea from the SEC is pretty straightforward: putting a stock on a blockchain doesn't change what that stock is. It's still a security.

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The framework also wants to extend the DTC Pilot, a three-year program that kicked off in December 2025.

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There's a split worth paying attention to here. Tokenized stocks issued directly by companies face different disclosure and custodial requirements than those issued by third…

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Nasdaq's pilot program, approved in March 2026, already lets participants trade tokenized versions of DTC-eligible equities and ETPs.

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NYSE is collaborating with Securitize. Other exchanges have their own 24/7 tokenized trading plans in various stages.

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Read also: SpaceX Pre-IPO Futures Hit $216 as Crypto Traders Push Valuation Past $2.5 Trillion

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Tokenized stock distributed value stands at $1.43 billion right now. If the Clarity Act passes, projections put that figure near $5 billion by year-end.

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The Clarity Act needs 60 votes to advance. Republicans hold 43 seats, which means at least 17 Democratic votes have to materialize. That's not a sure thing.

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If it passes, the Act shifts primary crypto regulatory oversight from the SEC to the CFTC. Digital securities, though, stay under SEC jurisdiction.

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And it probably changes how platforms like Ondo operate day-to-day. Compliance requirements, operational strategies, jurisdictional boundaries — all of it gets redrawn if the Act…

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