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SEC Authorizes Tokenized Stock Trading, Paving Way for 24/7 Markets
The US SEC's recent approval for tokenized stock trading could fundamentally alter equity market structure, enabling continuous, round-the-clock operations. This regulatory move signals a shift toward integrating blockchain technology into traditional…
The US Securities and Exchange Commission (SEC) has granted approval for tokenized stock trading, a development expected to bring equity markets closer to 24/7 operation. This regulatory decision, announced on September 17, 2026, paves the way for a continuous trading environment, departing from the current standard market hours. The move reflects increasing interest in leveraging blockchain technology to enhance market efficiency and accessibility.
Tokenized stocks, which represent traditional securities on a blockchain, could facilitate trading outside conventional exchange hours, offering greater flexibility for global investors. This shift may also lead to faster settlement times and reduced transaction costs, characteristic advantages of distributed ledger technology. The SEC's authorization marks a significant integration of digital asset concepts into the mainstream financial system.
Market participants will likely observe changes in liquidity dynamics and trading strategies as continuous trading becomes more feasible. The regulatory framework supporting this development aims to ensure investor protection and market integrity within this evolving landscape. This decision underscores a growing acceptance of blockchain-based financial instruments among established regulatory bodies.
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