SEC unveils five-year exemption for tokenized stock trading

Some crypto stocks rise after the exemption, though Coinbase shares fall on the news.

The US Securities and Exchange Commission has rolled out a five-year exemption for tokenized stock trading. Some crypto-adjacent stocks are rising on the news Thursday, though Coinbase shares are down.

The exemption extends relief the agency had earlier proposed, which was limited to four years and capped at $5 million. The wider scope and longer timeframe suggest the SEC is moving toward putting the framework into practice rather than continuing to study it.

Coinbase has already launched tokenized equities outside the United States but still needs SEC approval before it can offer them to US customers, which may explain why its shares slipped even as the broader announcement was read as favorable for the sector. On Wednesday, SEC Chair Paul Atkins said the agency would act to give investors more certainty around crypto. The exemption follows a setback in Congress: on Tuesday the Senate blocked the Digital Asset Market Clarity Act, falling short of the 60 votes needed to advance it.

For investors in crypto-adjacent equities, the exemption removes some uncertainty over whether tokenization efforts would face regulatory reversals. By going beyond its original proposal, the SEC is signaling it intends to keep integrating crypto infrastructure into mainstream markets rather than pulling back.