SEC Chair Says Tokenized Deposits Could Win Approval Next Year

Tokenized securities use blockchain-based tokens to represent traditional assets such as stocks. The technology could enable round-the-clock trading and more efficient settlement, but holders’ access to dividends, voting rights and asset protections still depends on the legal framework and market infrastructure. The US Securities and Exchange Commission’s current framework dates to the 1930s, making permanent rules from Congress crucial to industry investment and investor protection.

A June 15, 2026, report said SEC Chair Paul Atkins was using the agency’s existing exemptive authority to develop a temporary framework allowing companies to trade tokenized stocks. The proposal has yet to disclose the amounts involved or a formal effective date. SEC Commissioner Hester Peirce confirmed that the agency has broad exemptive authority, but legal experts cautioned that comprehensive legislation typically takes 12–18 months. Questions surrounding third-party issuance, buyer identification, dividends and voting rights remain unresolved.

The U.S. Securities and Exchange Commission's Investor Advisory Committee has endorsed securities tokenization, seeking to replace traditional settlement models by recording and trading shares on blockchains. The shift could enable near-instant, round-the-clock trading and reduce intermediary costs, but also raises concerns about investor protection, market fairness and information transparency.

As of July 19, 2026, the committee had voted to support the policy and recommended mandatory reporting requirements, fair-trading safeguards and rules governing third parties that put shares on-chain. SEC Chair Paul Atkins confirmed that the agency was developing guidance for tokenized stocks. No formal release date, eligibility thresholds or related amounts have been announced.

Tokenized securities represent shares, bonds or fund interests as tokens on a blockchain or other distributed ledger. If their legal and economic rights remain unchanged, their underlying risk is likewise unaffected by the technology used. Capital requirements directly affect the cost to banks of issuing, holding and trading these assets or accepting them as collateral, making technological neutrality a key prerequisite for their entry into mainstream finance.

On March 5, 2026, the Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) jointly issued guidance stating that qualifying tokenized securities are subject to the same risk weights, capital treatment and collateral haircuts as their non-tokenized counterparts. The use of a public or private blockchain generally does not alter that treatment. The document introduced neither a fixed dollar reserve requirement nor an additional capital surcharge, but the treatment does not apply to tokens with different legal rights.