Tokenized Stock Trading
SEC grants exemptions allowing tokenized U.S. stocks to trade directly on-chain.
Anonymous
Key Points
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South Korea’s planned OTC market will cap individual investors’ annual net investment at 100 million won (about US$73,700); the revised laws are set to take effect in February 2027.
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The SEC is separately considering ways to let individuals qualify as accredited investors through routes beyond income and net-worth thresholds, including certain professional credentials or a potential FINRA-developed exam.
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The SEC proposal on accredited-investor access also seeks public comment for 60 days after publication in the Federal Register.
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The CFTC has issued no-action relief for developers of self-hosted wallets, another regulatory development accompanying the SEC’s moves on tokenized assets.
The SEC is loosening rules around cryptocurrency custody and has granted an exemption for tokenized U.S. stocks to trade directly on blockchain networks. Financial Magnates reported the SEC proposed allowing investment advisers and regulated funds to self-custody crypto when no permitted custodian is available. The move opens doors for more firms to hold customer digital assets, though the proposal still needs a 60-day public comment period and a commission vote before it becomes final.
Meanwhile, Yahoo Finance noted that state-chartered trust companies could become custodians under the new framework. South Korea is also moving forward with its own tokenized securities market, capping individual investors' annual net investment at 100 million won (about $73,700) when the rules take effect in February 2027.
SEC Opens Doors to Self-Custody for Investment Firms
The SEC's new proposal tackles a long-standing problem: most investment advisers cannot legally hold customer crypto because no one is approved to do it. The Wall Street Journal explained that the SEC is proposing a rule allowing advisers to take custody of clients' cryptocurrency in certain circumstances. The proposal removes a major barrier for regulated firms wanting to manage digital assets without relying on crypto-native custodians.
Under the framework, state-chartered trust companies could become eligible custodians, Yahoo Finance reported. This expands the pool of qualified custodians beyond just crypto specialists. The proposal enters a 60-day public comment period before the SEC votes on whether to adopt it as official regulation.
On-Chain Tokenized Stocks Get Regulatory Green Light
The SEC granted an exemption allowing tokenized U.S. stocks to trade directly on blockchain networks. CryptoNews reported this move could create a more competitive market for custody and trading of tokenized securities. Trades must include participant screening and sanctions compliance checks to keep the system secure and legally sound.
This exemption marks a significant step toward digital asset integration in securities markets. It signals the SEC's willingness to accommodate blockchain technology within traditional investing frameworks, though with safeguards in place to protect investors and maintain regulatory oversight.
South Korea Sets Framework for Tokenized Securities Trading
South Korea is preparing its own tokenized securities market ahead of a February 2027 launch. The framework will make stocks, bonds, and investment funds eligible as backing assets for tokenized offerings. However, the country is imposing strict limits: individual investors can invest no more than 100 million won (approximately $73,700) per year in the new over-the-counter market.
New Routes to Become an Accredited Investor
The SEC is separately considering ways to expand who qualifies as an accredited investor. Current rules rely mainly on income and net-worth thresholds. The new proposal would add alternative paths, including certain professional credentials or a potential exam developed by FINRA, the financial industry's self-regulatory body. This proposal also enters a 60-day public comment period.
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