The U.S. Securities and Exchange Commission (SEC) has approved a Nasdaq rule to allow the trading of tokenized stocks and securities. The SEC signed off on the change on March 18, 2026, concluding it aligns with federal securities laws and investor protection standards. The rule permits eligible participants to settle trades in token form while ensuring these digital shares remain fully fungible with their traditional counterparts.
The Securities and Exchange Commission has approved a Nasdaq rule change allowing tokenized securities trading in the United States. The SEC formally approved the rule on March 18, 2026, stating in its conclusion that the structure aligns with securities laws and investor protection standards.
The SEC said the structure meets investor protection standards, noting that surveillance, data reporting and settlement timelines remain intact. Participants can opt into tokenized settlement using a designated order flag for clearing and settling trades in token form. Tokenized securities must remain fully fungible with traditional shares, sharing the same ticker, CUSIP, and shareholder rights.
Investors in tokenized shares retain standard protections including voting rights, dividend access, and claims on residual assets. This ensures consistency with existing securities laws and frameworks for shareholder equity.
On the same Wednesday, the SEC also issued joint guidance with the CFTC confirming that “most crypto assets” are not securities. These regulatory actions reflect growing momentum for asset tokenization within regulated financial markets.
