The Trump administration is preparing to unveil a framework for trading tokenized or digital versions of securities, according to a Bloomberg News report citing sources familiar with the matter.
The U.S. Securities and Exchange Commission (SEC) is expected to release an 'innovation exemption' for tokenized stocks as soon as this week, the report said.
This initiative underscores the administration's push to integrate stock trading onto crypto platforms, potentially creating a new regulatory pathway for trading shares outside traditional exchanges.
Recently, the Republican-led Senate Banking Committee advanced legislation aimed at establishing clearer U.S. crypto regulations.
According to the Bloomberg report, the SEC is leaning toward allowing trading in tokens that do not have the backing or consent of the public companies whose shares they track. These tokens would trade on decentralized platforms and may not provide traditional shareholder rights, such as voting power or dividends.
The SEC did not immediately respond to requests for comment.