Robinhood and Coinbase shares rallied 5% and 6% respectively after the SEC approved an 'Innovation Exemption' for tokenized stocks, establishing a framework for digital asset trading with issuer consent.
Robinhood shares climbed 5% after the SEC granted an exemption allowing tokenized stocks, directly supporting its existing tokenized stock offerings.
Coinbase shares rose 6% as the SEC's tokenized stock approval expands opportunities for crypto-focused trading platforms.
Nasdaq is preparing its platform for tokenized stocks and ETFs, and the SEC already approved its plan for such listings.
AMC's CEO had opposed unauthorized tokenized AMC shares, but the SEC rule gives issuers consent rights, potentially easing that concern.
The New York Stock Exchange, owned by ICE, is preparing for round-the-clock tokenized trading, which could boost exchange activity.
The SEC has issued a five-year order allowing trading venues to offer digital representations of company shares, signaling a shift toward 24/7 market access. The new rule mandates that tokenized assets provide identical rights to traditional securities and grants issuers veto power over tokenization, resolving recent industry disputes.
The rule requires trading venues to provide companies a 30-day notice before tokenizing their shares, granting the underlying company the right to object and block the move.