SEC plans to allow Blockchain -based stock trading

according to InformationCiting unveiled sources, the Securities and Stock Exchange is moving quickly to implement the stock plan on Blockchain as part of the broader Trump administration agenda: “The Or ORT from the SEC will provide a lifted reduction in Blockchain, which means that some of the absolute rules will not apply, the range or time time or time time Trading will be allowed. 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 NetflixStore it along with traditional encryption assets like Bitcoin or ethereum.

Such offers are not completely new. RobinHood is already in foreign markets as it is Coinbase Kraken, who recently CEO He said 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.

Symbolic stocks He presented the same thing as their 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 the 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.