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SEC delays plan for crypto versions of US stocks
23 May 2026

The US Securities and Exchange Commission (SEC) has postponed its plan to allow cryptocurrency firms to trade tokenized assets linked to stocks, according to Bloomberg.

The delay comes as the SEC considers feedback from stock-exchange officials and other market participants.

One contentious aspect of the proposal is a provision allowing trading of "third-party tokens," which would be issued without backing or consent from public companies.

Concerns over technicalities in blockchain networks
Market apprehensions

The SEC's proposal mandates platforms offering tokens to ensure investors get the same rights as regular shareholders, including dividends and voting rights.

However, former regulators have raised concerns about how companies would technically meet these obligations on pseudonymous blockchain networks.

Not all SEC officials are in favor of allowing trading of third-party tokens, people familiar with the matter said.

Innovation exemption may be 'limited in scope'
Regulatory outlook

SEC Commissioner Hester Peirce has hinted that the innovation exemption could be "limited in scope" and would only facilitate trading of digital representations of the same underlying equity security that an investor could purchase in today's secondary market.

This statement further emphasizes the cautious approach taken by some SEC officials toward this proposed plan.

Uncertainty for public companies over normal practices
Corporate apprehensions

Several former regulators and market experts have raised concerns about public companies facing uncertainty over normal practices like issuing dividends and counting shareholder votes as tokens with those rights proliferate on the blockchain.

Amanda Fischer, policy director at Better Markets and a former senior SEC official during former President Joe Biden's administration, said corporate executives should be worried about these implications.

Risks of tokenized securities falling into wrong hands
Security concerns

Austin Campbell, a crypto expert and former banker now teaching at NYU Stern School of Business, warned that tokenized securities could fall into the wrong hands on platforms without strict know-your-customer policies.

This increases the risk of sanctioned entities overseas operating on crypto platforms owning these tokens.

"You can't pay a dividend when you don't know who owns the token, because it might be the North Koreans," he said.