Coinbase and Circle Rise After SEC Announces Blockchain Trading Framework
Following a period of volatility due to the Senate's failure to pass the CLARITY Act and a Federal Reserve rate hike, crypto-linked stocks rebounded after the Securities and Exchange Commission (SEC) announced new exemptions for blockchain-based trading. The framework allows tokenized representations of U.S. stocks on certain platforms, potentially enabling extended trading hours and faster settlement akin to cryptocurrency markets. The SEC's conditional five-year exemptions require that stock tokens maintain equivalent rights as traditional shares, including voting and dividend entitlements. This move aims to foster innovation while maintaining investor protections and market integrity. The announcement came two days after the CLARITY Act stalled in Congress.
