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SEC Clears Path for Tokenized Trading in Traditional Markets
Last Updated: December 12, 2025
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Key Takeaways
- The SEC’s “no-action” letter allows a DTCC unit to test turning traditional securities into blockchain-based digital tokens;
- DTCC’s decision to tokenize major assets, such as the Russell 1000 and Treasury securities, marks progress toward regulated blockchain markets;
- The SEC is exploring an “innovation exemption” to help firms build blockchain systems without facing heavy regulatory barriers.
The US Securities and Exchange Commission (SEC) has taken a step toward allowing traditional markets to use blockchain technology.
A recent “no-action” letter from the SEC permits a subsidiary of the Depository Trust and Clearing Corporation (DTCC) to begin testing a service that converts traditional securities into digital tokens.
This means the SEC will not pursue enforcement if the project operates as described.
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The DTCC, which handles much of the nation’s clearing and settlement activity, plans to create blockchain versions of assets such as the Russell 1000 index, exchange-traded funds that follow major benchmarks, and US Treasury securities.
Because the DTCC is a central part of US financial operations, its involvement signals a practical start to blockchain adoption in regulated markets.
SEC Chair Paul Atkins said in a post on X that US financial markets are ready to move onto blockchain systems. He noted that the Commission is open to using new technologies to modernize market operations.
Atkins also said that blockchain-based systems could make trading more transparent, predictable, and efficient for investors.
He added that this pilot program is only an early step. The SEC is also reviewing an “innovation exemption” that would make it easier for financial firms to build blockchain-based systems without facing heavy regulatory barriers.
Recently, Atkins shared his thoughts on how the SEC will continue shaping cryptocurrency rules. What did he say? Read the full story.
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