SEC Postpones Tokenized Shares Framework; Bitcoin Slides to $75,834
Bitcoin and the broader crypto complex sold off sharply on Friday after reports that the U.S. Securities and Exchange Commission has pushed back a closely watched draft rule that could have paved the way for tokenized share trading on crypto platforms.
Bitcoin fell to about $75,834, cutting roughly $33.8 billion from its market capitalization. Ethereum slid to around $2,000, erasing an estimated $8.58 billion in market value.
Bloomberg reported that SEC staff had been preparing an "innovation exemption" aimed at enabling wider trading of tokenized stocks, with a draft framework said to be ready as soon as this week. The release was delayed as the agency reviews recent feedback from stock-exchange officials who have been in discussions with SEC staff.
A key fault line is whether the exemption would permit "third-party tokens"—tokenized representations of shares issued without support or explicit consent from the underlying public companies. Opponents say the approach could introduce legal and corporate-governance complications; supporters argue it would broaden access.
Under the draft, crypto platforms listing tokenized equities would be required to ensure token holders receive the same rights as conventional shareholders, including dividends and voting. Former regulators and market specialists say enforcement remains uncertain when tokens circulate on pseudonymous blockchains rather than through established shareholder recordkeeping systems.
The SEC has not formally revised the draft, and officials are not aligned on expanding any exemption to cover third-party tokens. Pro-crypto Commissioner Hester Peirce struck a cautious tone, writing on X that she expects the exemption to be "limited in scope" and focused on "digital representations of the same underlying equity security that an investor could purchase in the secondary market today."
Regulators and market participants also raised compliance and security concerns, including the risk that offshore operators could use token structures or blockchain processes to sidestep U.S. oversight and complicate enforcement.
The postponement keeps the market waiting as the SEC continues consultations. Exchanges, token issuers, public companies and investors are expected to closely watch any final decision—and the exact shape of any exemption—for its potential to alter how equity exposure is traded on blockchain-based rails.
