The SEC has opened the next real fight over tokenized stocks: not whether blockchain-based equities can trade, but whether they must stay inside the same Wall Street plumbing that runs traditional shares. Nasdaq’s approved pilot and the competing arguments around it show the immediate battle is over who controls wallets, routing, custody and investor access as stocks move onto blockchain rails.
In a March 18, 2026 order, the SEC approved Nasdaq’s rule change to trade securities in tokenized form. That same order says tokenized shares must trade alongside their conventional counterparts on the same order book, with the same CUSIP, ticker and shareholder rights.
The rollout is narrow by design. Nasdaq’s initial universe is limited to Russell 1000 securities and ETFs tied to benchmarks such as the S&P 500 and Nasdaq-100, a constraint that matches Coinlive’s earlier weekly recap of the tokenized-stock rule and underscores how tightly the SEC is boxing in the first phase.
Why This SEC Clash Matters for Tokenized Stocks
In this structure, tokenized stocks do not mean free-floating crypto versions of equities operating outside U.S. market plumbing. The December 11, 2025 SEC staff no-action letter lets DTC record security entitlements with distributed ledger technology through registered wallets while the underlying securities remain registered in the name of Cede & Co., so the blockchain layer sits on top of the existing depository system.
The pilot is also temporary. The no-action letter says the relief will be withdrawn three years after launch, which makes the current Nasdaq pathway a conditional test rather than a permanent rewrite of U.S. equity settlement.
“Investor choice is critical, particularly at this early stage when the market is testing what works.”
How Blockchain-Based Stocks Could Challenge Wall Street’s Gatekeeping
Crypto advocates want that temporary structure to become less intermediary-heavy, not more. In a March 5, 2026 submission, Coin Center told the SEC that blockchain-based systems may remove the need for a separate transfer agent and urged the Commission not to force tokenized securities back through legacy middlemen.
“We urge the Commission to resist unnecessary reintermediation.”
Peter Van Valkenburgh, Coin Center
Wall Street’s trade group is pushing the other way. In a February 27, 2026 letter, SIFMA warned that wallet apps for tokenized U.S. stocks could replicate broker functions such as order routing, best-price representations and execution services, so broad relief from Exchange Act protections should be rejected.
Read together, the March 5 Coin Center letter, the February 27 SIFMA letter, and the March 18 Nasdaq approval show a live fight over reintermediation, not a final SEC ruling on who will ultimately control tokenized equities. That broader tension also sits beside Coinlive’s coverage of the SEC’s softer rhetoric in its digital-commodities policy shift, a reminder that tokenized securities still remain inside the securities bucket.
The broader blockchain backdrop is cautious rather than euphoric. Ethereum traded near $2,090.33 with a 24-hour change of -2.49%, while the Fear and Greed Index stood at 11, or Extreme Fear, which fits Coinlive’s recent read on how capital has been rotating toward Bitcoin ETFs and stablecoins.
What Traders and Institutions Should Watch Next
The next signal is whether future SEC guidance keeps tokenized stocks tied to DTC-held entitlements and broker-style controls, or whether new relief moves beyond the three-year DTC pilot window. If the March 18 order becomes the template, blockchain rails may speed recordkeeping while leaving exchanges, brokers and custodians firmly in charge.
If later filings lean closer to the Coin Center submission, crypto platforms and issuers will argue for more direct ownership and transfer mechanics. If the SEC instead adopts the SIFMA view, wallet providers that touch routing or execution may need to look more like regulated broker-dealers, which would preserve Wall Street’s gatekeeper role even as the underlying rails move onchain.
The March 18 SEC order matters beyond Nasdaq because it gives institutions a live template for how U.S. regulators may treat onchain settlement. That is why the debate belongs in the same policy conversation as Coinlive’s coverage of France and South Korea’s central-bank talks on stablecoins and CBDCs: blockchain rails are advancing, but the open question is which intermediaries keep the keys.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
