The U.S. Securities and Exchange Commission is reportedly working on a framework to allow stocks to be traded using blockchain technology, similar to how cryptocurrencies are exchanged, according to sources cited by The Information.
The initiative is considered a key element of the Trump administration’s crypto-focused regulatory agenda, and could potentially enable investors to buy tokens representing shares in companies like Tesla or Nvidia on cryptocurrency exchanges.
SEC staff are currently consulting with industry participants on the proposal. Firms such as Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) are pushing for swift regulatory approval to enable stock trading on blockchain-based platforms.
However, the plan faces resistance from established financial institutions, which have a vested interest in maintaining the traditional trading system that underpins their profitable operations.
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