SEC May Put Two Critical Crypto Moves on the Agenda This Friday: 24-Hour Trading Period for Tokenized Stocks

The U.S. Securities and Exchange Commission (SEC) may put new regulations for crypto-linked investment contracts and tokenized securities on its agenda this Friday.

According to information reported by Bloomberg, the SEC is preparing to take two important steps concerning the cryptocurrency market in the coming days. The agency will evaluate a special offering regime for investment contracts linked to specific crypto assets during an open meeting to be held on Friday.

It is stated that the SEC may announce an “innovation exemption” for tokenized securities on the same day. This exemption could pave the way for stocks to be traded on the blockchain 24 hours a day.

Right of objection for companies in tokenized shares

The proposal on the agenda may also offer public companies the option to object to third parties tokenizing and listing their shares. Thus, companies could have a greater say in the process of converting their own shares into blockchain-based products.

Brett Redfearn, president of tokenization company Securitize and former director of the SEC’s division of trading and markets, argued that companies should be involved in the process of how their own shares are tokenized. He stated he hopes the regulation gives these companies a meaningful role in the decision-making process.

Another focus of the regulation could be anti-money laundering measures. Authorities want to prevent malicious actors from evading U.S. oversight through overseas platforms and loopholes in blockchain technology.

In this context, stricter rules requiring platforms that trade digital tokens to be U.S.-based legal entities may be considered. However, it is reported that these steps have not yet been finalized and Friday’s meeting will clarify the direction of the regulations.