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- SEC pushing blockchain stock trading plan with exemptions, Tesla, Nvidia tokens likely joining markets.
- Tokenized equities may hit the trillion-dollar scale, though Citadel warns of shallow regulatory arbitrage.
The U.S. SEC is preparing to introduce blockchain-based trading for equities, allowing shares of companies such as Tesla and Nvidia to function like digital tokens. Reports suggest the plan would provide exemptive relief from some current trading rules.
“The SEC’s effort would provide exemptive relief for blockchain-based trading of stocks, which means some rules governing stock trading wouldn’t apply,” according to The Information.
The scope or time limit of the exemption is unclear. The effort would allow trading to begin quickly.
This development comes shortly after the federal government started publishing some economic data on-chain. The Trump administration has openly supported digital asset expansion, and this new SEC initiative fits within that wider policy direction.
BREAKING: The SEC is reportedly moving to allow stocks to trade like crypto, where stocks would trade on-chain.
Under the plan, investors could buy tokens on crypto exchanges that represent shares of companies like Tesla or Nvidia.
— The Kobeissi Letter (@KobeissiLetter) September 30, 2025
SEC Chair Backs Tokenized Assets as Innovation
Interest in tokenization has gathered momentum in recent months. Both Robinhood and Kraken have already launched platforms tied to tokenized equities. Coinbase is now reported to be seeking SEC approval to enter the same business.
Nasdaq added to the trend in September by filing for a rule change that would allow tokenized stock listings on its system. At the same time, asset managers such as VanEck and major venues, including the New York Stock Exchange, have held discussions with regulators over tokenized securities.
SEC Chair Paul Atkins recently described tokenized assets as an “innovation” that regulators should support rather than restrict. He argued that such products could lower transaction costs and open financial markets to more participants, stressing that the agency should look at ways to advance innovation.
Traditional Firms Voice Concerns
However, not all industry leaders support the SEC’s rapid embrace of blockchain equity trading. Citadel Securities, in a July note to the agency’s Crypto Task Force, urged regulators to ensure the move produces genuine benefits. The firm wrote,
Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage.
Despite these warnings, interest in tokenized assets continues to expand. Analysts at Binance Research compared the trend to the DeFi surge of 2020 and 2021. They suggested that tokenized equities may be approaching a major inflection point in the shift toward hybrid finance.
Their report estimated that the potential value of tokenized stock markets could surpass $1.3 trillion if only 1% of global equities transitioned onto blockchain. Such figures highlight the possible scale of change if regulators clear the path for mainstream adoption.
Current figures remain small, with real-world asset tokenization valued at just $735 million, representing 2.3% of the share, according to RWA.xyz.
