Lead

The U.S. Securities and Exchange Commission is reportedly developing a regulatory framework that would permit third parties to create and trade tokenized versions of publicly traded stocks without the consent of the companies that issue those shares. The proposal, reported by Bloomberg and echoed on the r/stocks subreddit, could significantly broaden the market for tokenized equities and alter the traditional relationship between issuers and digital asset providers.

Background

Tokenized stocks are digital representations of traditional equities that can be traded on blockchain platforms. Historically, the creation of such tokens has required the approval of the underlying company, ensuring that the issuer maintains control over how its shares are represented digitally. The SEC has been monitoring the growth of tokenized securities, balancing innovation with investor protection and market integrity.

What Happened

On May 18, 2026, Bloomberg reported that the SEC is preparing to unveil a framework that would allow third parties to issue tokenized shares of public companies without the companies’ consent. The information was cited by sources familiar with the matter and was also discussed on the r/stocks subreddit. The proposed framework would enable digital versions of shares to be created and traded independently of the issuing company’s approval.

Market & Industry Implications

According to the sources, the new framework could expand the supply of tokenized equities by removing the consent requirement. This change may lead to a larger number of tokenized products available to investors and could increase liquidity in the tokenized market. However, the sources do not provide specific details on how the SEC plans to address potential risks such as dilution, regulatory compliance, or market manipulation.

What to Watch

Investors and market participants should monitor the SEC’s formal announcement of the framework, which is expected to be released shortly after the Bloomberg report. Key points of interest will include the specific rules governing issuer consent, the role of third‑party token issuers, and any safeguards the SEC plans to implement to protect investors and maintain market integrity.