SEC Greenlights Tokenized Stocks, Robinhood Rallies 6%

Investing.com -- Robinhood Markets (NASDAQ: HOOD) shares rose 6% Thursday following the Securities and Exchange Commission’s announcement of guidance permitting digital versions of securities to trade in the United States.

The SEC moved forward with its plan after the Clarity Act failed to advance in a Senate vote on Tuesday. The regulator issued what it calls the "Innovation Exemption," a five-year plan allowing tokenized stocks to begin trading through designated venues.

The guidance grants

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The Securities and Exchange Commission on Thursday issued an order creating a regulatory pathway for certain trading venues to issue tokenized representations of publicly traded U.S. stocks, effective immediately.

The so-called Innovation Exemption provides certain trading platforms and liquidity providers with the regulatory relief needed to facilitate tokenized stock trading, provided they meet certain conditions. Two of the requirements have emerged as key points of contenti