The SEC Just Granted a Temporary Innovation Exemption For Tokenized Stock Trading. Here's What That Means For the Average Investor.
The SEC opened a five-year test lane for blockchain stock trading. Most investors can watch this experiment from the sidelines for now.
Overview
On Sept. 17, the Securities and Exchange Commission (SEC) issued an order it calls the "Innovation Exemption." The name is vague, but the substance is not: for the next five years, qualifying blockchain-based platforms can operate markets for tokenized versions of real, exchange-listed U.S. stocks without registering as stock exchanges.
This change allows trading platforms to trade tokenized versions of real U.S. stocks around the clock, with trades settling almost instantly rather than the usual one business day.
Details
Before anyone cancels weekend plans to trade Apple on the blockchain at 3 a.m., you should know a few details. This is not a revolution. It's more of a supervised science fair project with a five-year permission slip.
Source
Originally published at www.fool.com.