SEC Gives Tokenized Stocks a Five-Year Onchain Runway, Robinhood CEO Vlad Tenev Says ‘It’s a Good Day for US Innovation’

The Securities and Exchange Commission (SEC) on Thursday created a five-year temporary regulatory pathway for trading certain tokenized U.S. stocks on blockchain-based venues, granting conditional exemptions from exchange and dealer-registration rules. SEC Opens Five-Year Path For Tokenization The SEC’s "Innovation Exemption" frees eligible Tokenized Securities Venues from the legal definition of an exchange and gives automated-market-maker liquidity providers relief from dealer-registration rules. The move lets tokenized National Market System stocks trade while the agency studies permanent rules. Robinhood Markets Inc. (NASDAQ:HOOD) CEO Vlad Tenev welcomed the shift. "Tokenization is coming to America. Thanks to the SEC’s leadership, Americans can start to reap the benefits of tokenization: instant settlement, 24/7 trading, fractionalization by default and more. It’s a good day for US innovation," he wrote on X. Tokenization is coming to America.Thanks to the SEC’s leadership, Americans can start to reap the benefits of tokenization: instant settlement, 24/7 trading, fractionalization by default and more. It’s a good day for US innovation. https://t.co/477vMznpo4— Vlad Tenev (@vladtenev) September 17, 2026 Read Also: CFTC Expands Regulatory Relief for Crypto Developers Crypto Market Structure Moves Into Equities The order brings an AMM-based trading structure commonly associated with crypto markets into a limited segment of U.S. equities. Eligible venues can use AMM liquidity pools, a model common across decentralized exchanges, but they must verify that tokenized shares give holders the same rights as equivalent traditional stock, including dividends and voting rights. The exemption excludes synthetic tokens that merely provide exposure to a stock rather than representing the underlying security. That distinction matters because many offshore tokenized-stock products function as derivatives rather than actual shares. Robinhood has already pushed tokenized U.S. equities abroad and in July expanded Robinhood Chain, its Arbitrum-based network, to support 24/7 stock-token trading, lending and collateral use across DeFi. Tenev later argued that the U.S. was in the "early innings of a global tokenization supercycle" and needed to move quickly. Crypto Firms Prepare For Regulatory Shift The SEC action also arrives after the Senate failed Tuesday to advance the Trump-backed Clarity Act, leaving the broader crypto market-structure fight unresolved. SEC Chair Paul Atkins called the exemption a bridge toward durable rulemaking and said the agency would use its existing authority after Congress failed to advance the bill. Reuters said crypto firms including Robinhood and Coinbase Global Inc. (NASDAQ:COIN) have been preparing for U.S. tokenized-stock trading. The SEC says tokenization could improve liquidity, cut costs, support self-custody and allow faster settlement. Read Also: Scott Bessent Says Financing Iran With Crypto 'Not Beyond' Treasury's Reach, Sanctions Bitcoin Exchange Tied to Iranian Financier Babak Zanjani Photo courtesy: Thrive Studios ID / Shutterstock.com