SEC Approves Onchain Trading for Real Stock Tokens, Bans Synthetic Ones
The U.S. Securities and Exchange Commission (SEC) has approved onchain trading of real stock tokens while banning synthetic versions from such platforms. The decision aligns with objections raised by AMC CEO Adam Aron against Robinhood's tokenized stocks, which he called 'vile' due to their lack of connection or approval from the companies involved. Robinhood had been offering these tokenized shares through its subsidiary, but no listed company signed on. SEC Chairman Gary Gensler emphasized that venues must ensure tokens replicate all rights and privileges of ordinary shares before listing them. The new rules require venues to notify issuing firms and allow objections prior to a token's launch. The relief is temporary for five years while the SEC gathers public feedback, with plans for permanent regulations ahead.
Tickers: $AMC
Topics: blockchain trading SEC synthetic tokens tokenized stocks