The US Securities and Exchange Commission (SEC) says it plans to implement a new system for tokenized trading on decentralized crypto platforms.
Citing people familiar with the matter, Bloomberg reports that the SEC is expected to release the so-called new exemption for tokenized stocks starting this week.
The regulator may also review the products of companies that contain trademarks that are not licensed or sponsored by the issuer.
Tokenization of real world assets involves the creation of blockchain-based instruments such as stocks and bonds, which can be traded around the clock. The SEC classifies confidential information as information disclosed by or on behalf of issuers and disclosed by third parties.
“Third party” indicators may well provide a new way of thinking about the movement of stock prices but may not have the same benefits as common stock such as voting rights and dividends.
The report says that under the SEC’s plan, platforms that cannot offer the benefits of traditional products will lose the right to register tokens. Agency officials are still working on the release though and details may change before they are released.
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