BREAKING: SEC Greenlights Nasdaq’s Tokenized Stock & Securities Trading Rule

The U.S. Securities and Exchange Commission (SEC) has officially approved a landmark Nasdaq rule change, clearing the way for tokenized stocks and securities to trade on the exchange. In a decision signed March 18, 2026, the regulator concluded the framework complies with federal securities laws and maintains critical investor protection standards, including surveillance, data reporting, and settlement timelines.

The Nasdaq change allows eligible participants to opt into tokenized stock settlement using a designated order flag, signaling that a trade should clear and settle in token form rather than through traditional book-entry systems. Under the framework, tokenized securities must remain fully fungible with their traditional counterparts, sharing the same ticker, CUSIP, and shareholder rights. Investors in tokenized shares will retain standard protections, including voting rights, dividend access, and claims on residual assets, ensuring consistency with existing securities laws.

On Wednesday, the SEC also issued joint guidance with the CFTC confirming “most crypto assets” are not securities. The approvals reflect growing momentum around tokenization within regulated financial markets, as exchanges and infrastructure providers explore blockchain-based representations of traditional assets without departing from existing regulatory frameworks.