SEC Approves Nasdaq Tokenized Stock Trading and New Crypto Framework

The United States Securities and Exchange Commission approved a proposal by Nasdaq Inc. on March 18, 2026, allowing certain stocks and exchange-traded products to be traded and settled as blockchain-based digital tokens. The initial rollout includes constituents of the Russell 1000 Index and ETFs tracking the S&P 500 and Nasdaq 100. Tokenized shares will maintain identical prices and rights to traditional shares but will settle via blockchain through the Depository Trust Company.

This approval follows a broader push toward digital asset integration. The New York Stock Exchange and Nasdaq announced partnerships with cryptocurrency platforms OKX and Kraken, respectively, to advance tokenized stock trading. This shift aims to replace traditional intermediaries with instant execution, a move Robinhood CEO Vlad Tenev described as an unstoppable force.

Simultaneously, the SEC and the Commodity Futures Trading Commission jointly issued a new interpretation on March 17 to clarify the application of federal securities laws to cryptocurrencies. The framework classifies tokens into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. SEC Chairman Paul Atkins stated that most crypto assets are not securities, though he noted that a non-security asset can become subject to these laws if sold as an investment contract. Atkins also proposed a fit-for-purpose startup exemption safe harbor to aid capital raising.

While regulators claim the guidance ends years of industry confusion, the nonprofit Better Markets criticized the decision. The organization argued that refusing to treat crypto assets as securities endangers retail investors by ignoring the speculative nature of the investments.