SEC weighs plan to allow blockchain-based stock trading amid crypto push: Report

The SEC is reportedly considering groundbreaking regulations that would allow blockchain-based stock trading on cryptocurrency exchanges, marking a significant shift toward mainstream tokenization adoption. This potential policy change could revolutionize traditional financial markets by bridging the gap between conventional securities and the rapidly growing DeFi ecosystem.

The Securities and Exchange Commission's exploration of blockchain-integrated stock trading represents a major regulatory milestone for the cryptocurrency industry. If implemented, this initiative would enable tokenized versions of traditional stocks to trade alongside Bitcoin, Ethereum, and other digital assets on crypto platforms, potentially unlocking billions in trading volume.

This development signals the SEC's evolving stance on blockchain technology and tokenization, moving beyond previous regulatory hesitancy. The proposal could dramatically expand crypto exchange offerings while providing traditional investors with new avenues to access digital asset markets. Market analysts suggest this regulatory shift could drive significant institutional adoption and boost cryptocurrency market capitalization.

The integration of blockchain-based securities trading would represent a fundamental transformation of financial infrastructure, potentially making DeFi protocols more accessible to mainstream investors while enhancing market liquidity across both traditional and cryptocurrency markets.