SEC plans to allow blockchain-based stock trading
Does it matter if the arrow you buy comes in the form of a symbol on Blockchain? We can soon discover that the Securities and Stock Exchange Committee progresses ahead with a plan to allow companies to provide stock trading “on the chain”. The plan will be a blessing for companies such as Coinbase and Robinhood, which feels expanding their encryption offers, but it may also pose a threat to investors, according to major financial companies such as Citadel Securities, which slowly demands the agency.
According to information, quoting unveiled sources, the Supreme Education Council moves quickly to implement the shares plan on Blockchain as part of the broader Trump administration agenda: “The Supreme Education Council’s effort may provide for exempt traders or time to be determined by shares -based trading, which means that some of the rules that govern trading shares will not apply. To start quickly.”
In practice, this may mean that the investor soon can use a Coinbase or the RobinHood encryption platform to buy distinctive symbols of common stocks such as Apple or Netflix, and storing them along with traditional encryption assets such as Bitcoin or Ethereum.
Such offers are not completely new. Robinhood is already advanced in foreign markets as it is Coinbase Kraken, who was recently told by CEO luck It has proven that distinctive stocks are especially popular in places like South Africa, because Blockcha offers allow investors to reach American stocks without paying exorbitant mediation committees.
Distinguished stocks offer the same thing as its traditional counterpart: an opportunity for the investor to own a part of the company, and earn a profit if the value of the shares increases or if the company pays profits distributions. But royal mechanics are not the same. In the event that traditional shares are purchased, the customer puts a purchase, and the mediation gets on their behalf, and they are appointed full property rights. On the contrary, the distinctive shares require an additional step in which the mediation is created a distinctive symbol – recorded on Blockchain like Ethereum – represents a demand for the basic share or in some cases to a box that has a basket of stocks.
Supporters say the advantages of symbolic stocks are a faster process to settle trading. Currently, this process can take a day or more, and during intensive trading periods, it led to the collapse of the market. In 2021, the CEO of Robinhood Vlad Tenev published a leaflet in the blog entitled “It is time to settle in the actual time” after the accumulation of settlement during the peak of Meme Stock trading in the COVID era, creating a liquidity crisis for the company.
While Blockchain-based trading and settlement will be faster than the current system, the likes of Citadel Securities-which deals with about 35 % of retail shares deals in the United States-may have an introductory impact on the market. There is also the issue of compliance, and whether the distinctive stocks will come with the traditional handrails to prevent money laundering and other illegal activities.
In any case, unlikely to launch the distinctive shares in the United States is imminent, according to information, Legacy SEC players will likely to be forcing them to engage in a detailed organizational review rather than just granting exemptions for current stock trading rules.
2025-09-30 20:26:00
