'Major Breakthrough': Saylor Reacts to SEC's Big Crypto Move
The U.S. Securities and Exchange Commission has taken one of its biggest steps yet toward bringing Wall Street stocks onto public blockchains.ăăIt has unveiled a temporary regulatory framework that will allow certain tokenized U.S. equities to trade using infrastructure borrowed directly from decentralized finance.ăăFormer Strategy CEO Michael Saylor has described it as a âmajor breakthrough.âăăWhy it is a big dealăăTokenized stocks themselves are not entirely new. Platforms outside the United States have already experimented with blockchain-based representations of publicly traded companies.ăăThe SEC is opening a path for actual secondary-market trading to take place using mechanisms closely associated with crypto and decentralized finance.ăăA TSV can provide automated market maker liquidity pools in which approved participants buy and sell tokenized shares. AMMs rely on smart contracts and pools of assets rather than the traditional order-book model used by major stock exchanges.ăăEven more notably, the SEC requires the smart contracts behind these venues to be public and auditable and to operate on a public, permissionless distributed ledger.ăăThe SEC is allowing pieces of the public blockchain infrastructure developed by the cryptocurrency industry to become part of an experimental market structure for U.S.-listed stocks.ăăSEC Commissioner Hester Peirce and Atkins had previously floated precisely this possibility.









