The US Securities and Exchange Commission has issued an order permitting onchain stock trading while prohibiting synthetic tokens. The new regulatory framework mandates that tokenized assets must offer holders the same rights and privileges as traditional shares. Platforms listing tokens created by third parties are now required to notify the underlying company and provide an opportunity for objection.
Trading venues must publish comprehensive data, including trade price, volume, and time. Access to these markets is restricted to approved participants, and trading activity must be synchronized with the halts of the underlying shares. The current exemption is temporary and set to expire in five years, with the SEC planning to gather public feedback before establishing permanent rules.
Robinhood, which previously offered tokenized versions of AMC and over 190 other companies, has expressed support for the SEC's decision. The company plans to introduce voting rights and redemption features for its tokens. Robinhood executives view this regulatory shift as a significant milestone for the development of liquid tokenized securities markets within the United States.
