- After Nasdaq’s request, the US SEC reportedly started drafting rules to support stock trading on-chain.
- SEC Chair Paul Atkins denied speculations regarding his agency’s merger with the CFTC, but confirmed that crypto is their top priority.
The US Securities and Exchange Commission (SEC) continues its momentum in overturning the past crypto crusade under the administration of former Chair Gary Gensler. The regulator is reportedly crafting a draft supporting stock trading on-chain. Meanwhile, its current chair, Paul Atkins, identified crypto as the agency’s top priority.
Demand for On-Chain Stock Trading
The Information revealed this Tuesday that the SEC is working on allowing stock trading on blockchain. This would effectively imbue them with the advantages of cryptocurrencies, particularly on 24/7 accessibility, security, and more streamlined settlement procedures.
The move comes right after Nasdaq sought the SEC’s approval to let its listed companies tokenize their equity securities and exchange-traded products (ETPs). The New York-based stock exchange explained that it’s necessary to boost financial innovation in the US market while guaranteeing stability, fairness, and investor protections.
Additionally, a SEC Crypto Task Force memo revealed that the group met with representatives from the New York Stock Exchange and Intercontinental Exchange last week. Their agenda included considerations regarding the trading of tokenized equities and structures for facilitating such trading activities.
Mike Novogratz’s Galaxy Digital is poised to become one of the first to benefit from the SEC’s rule change. In early September, the financial services and investment company announced that it had partnered with asset management firm Superstate to tokenize its Class A Common Stock on the Solana (SOL) chain.
Solana treasury company Forward Industries and Ethereum (ETH) treasury company Sharplink have also made similar declarations.
Crypto: The SEC’s Key Priority
Recently, speculations ran rife that the SEC and Commodity Futures Trading Commission (CFTC) are pushing for a merger. However, former Fox Business journalist Eleanor Terrett shut down those rumors. She noted that such talks tend to reemerge every leadership change in the two agencies.
Atkins addressed the matter after Monday’s SEC–CFTC Joint Roundtable on Regulatory Harmonization. He told the press that the agencies’ focus centers on the “harmonization” of regulatory oversight. The official called the merger reports unfounded.
Interestingly, Atkins told reporters that crypto is the SEC’s top priority. This aligns with the Commission’s introduction of generic listing standards for crypto exchange-traded fund (ETF) applications and efforts to streamline, clarify, and enhance digital asset regulations via Project Crypto.
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