SEC Opens Onchain Stock Trading

··8 min read
Crypto/Web3RegulationFinance
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AI Summary

The SEC granted a five-year conditional exemption allowing tokenized stock trading venues to operate on public blockchains, with volume caps and an issuer veto. Circle launched its Arc mainnet with 11 institutional validators including BlackRock, DTCC, and Visa, enabling USDC-based transactions with no gas token. The Senate blocked the CLARITY Bill 49-50, but the SEC and CFTC indicated they will proceed with rulemaking anyway.

Key Facts

✓SEC granted conditional relief for tokenized stock trading on public blockchains, capping volumes at 0.25% of daily volume for Tier 1 securities.
✓Circle launched Arc mainnet with institutional validators like BlackRock, DTCC, and Visa, featuring USDC fee payments and no gas token.
✓Senate blocked the CLARITY Bill 49-50, but the SEC and CFTC say they will write rules anyway.

Author Takes

Skeptical

Onshore tokenized stock trading

Onshore tokenized stock trading now requires transfer agent's register, shareholder's vote, and issuer's acquiescence, limiting venues to those with registered transfer agents.

Skeptical

Circle's Arc

Circle owns every layer of Arc except block producers, giving it control over validators, fee asset, FX layer, and token supply.

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