SEC’s Tokenized Equity Initiative Sparks Market Fragmentation Concerns
SEC's tokenized stock exemption may fragment trading liquidity and shift revenue offshore as blockchain platforms capture market share with 24/7 access.
➤ The SEC's new exemption for tokenized stocks may lead to market fragmentation and price inconsistencies across trading venues. ➤ Blockchain platforms offering 24/7 access and fractional ownership are attracting significant trading volume, potentially shifting revenue offshore from traditional exchanges. ➤ Major exchanges like NYSE and Nasdaq are developing their own tokenization systems to adapt to this evolving landscape.











