2459: SEC Clears On-Chain Stock Trading in Major Bitcoin Wall Street Shift

Justin Verrengia (0:00)

Bitcoiners, the financial system just made a move. I never thought I'd see this quickly. And the timing is fricking incredible. Because less than 48 hours after the Clarity Act failed, its biggest Senate test, something much bigger just moved forward. Let's get right into it. Bitcoin just forced Wall Street to cross a line it spent 17 years refusing to cross. The SEC just cleared the way for stocks to trade on chain. Think about how fricking insane that is. Wall Street fought Bitcoin, banks fought Bitcoin, regulators try to contain Bitcoin. Now, the SEC itself is opening the door for Wall Street to adopt the financial architecture Bitcoin unleashed to the world. This is bigger than stocks. Today, the SEC issued an order granting temporary, conditional, exemptive relief for tokenized securities venues. And buried beneath all the regulatory language is something absolutely massive. Tokenized US stocks can now trade using permissioned, automated market makers and liquidity pools under the conditions established by the SEC. That means traditional securities are being allowed to enter financial architecture that would have sounded completely foreign to Wall Street when Bitcoin launched back in 2009 And look at where we're at now. BlackRock has a spot Bitcoin ETF. Major banks are building Bitcoin custody. Wall Street institutions are offering Bitcoin exposure. The United States has established a Bitcoin strategic reserve. This transformation is happening right in front of us. And the timing is absolutely incredible. Because Congress just failed to advance the Bitcoin Clarity Act to its biggest Senate test. For a moment, you could have looked at that vote and thought, here we go again, another political roadblock, another delay, another excuse for the old financial system to drag its feet. Except Bitcoin adoption didn't stop. Wall Street didn't stop. And apparently neither did the SEC. Less than 48 hours after Clarity failed at Senate procedural vote, the regulatory machine is already moving through with existing authority. And Clarity itself isn't dead either. Seven Democratic senators are now saying this week's failure was a setback, but not the end. While reaffirming their commitment to continue working on the legislation, Senator Cynthia Lummis says the Senate could potentially take another shot at Clarity before October 1st. Meanwhile, another major piece of Bitcoin legislation just moved forward. The Strategic Bitcoin Reserve Bill advanced to the House of Financial Services Committee 28-21 with the vote. That means the bill has cleared the committee stage and now can move towards consideration by the full House, but this is not law yet. Keep that in mind. It would still need to pass the House, clear the Senate, and be signed by the President. But think about where this conversation has moved. America already has the Strategic Bitcoin Reserve. Now Congress is advancing legislation addressing how government-held Bitcoin is protected for decades, while examining budget-neutral strategies for acquiring additional Bitcoin. At the same exact time, the SEC is opening a regulatory path for traditional stocks to move on chain. Do you see what's happening here? This isn't one company adopting Bitcoin. This isn't one ETF, and it's not one bank. We're watching multiple pieces of the American financial system move towards the world Bitcoin created. Not because Bitcoin asked permission. Not because Wall Street suddenly discovered decentralization. Because Bitcoin survived long enough that the institutions, which once dismissed it, now have to adapt to the technological and monetary shift happening around them. 17 years ago, Bitcoin launched outside the financial system. Today, the financial system is increasingly rebuilding itself around ideas Bitcoin proved could work. And once Wall Street starts moving assets on chain, there is no putting that genie back in the bottle. Bitcoin changed the rules. Now the financial system is being forced to follow. Now let's go deeper, because what the SEC just did is only one piece of what's unfolding right now. Yeah, I want to show you exactly what the SEC just announced, because once you see what they're actually allowing, the bigger picture becomes impossible to ignore. Here's what you need to know, as published here by the SEC themselves. Today, the SEC issued an order granting temporary conditional exemptive relief to tokenize security venues from the definition of exchange and the Exchange Act to trade tokenized NMS stock using innovative permission, automated market makers and liquidity pools. And they just published this here. You can see the timestamp, 9:03 a.m. And here's an update. The SEC just announced they'll allow stocks to be traded on chain. The whole financial system is moving to Bitcoin and crypto. Check out this clip.

Paul Atkins (4:35)

Again, we are out to harmonize the rules as between the SEC and the CFTC, giving clarity and certainty to the innovators and to investors in this particular area so that people can develop their products in the United States rather than feel that they have to go offshore to do that. So if we can do this here in the United States under American law, I think that will be best for investors, best for the financial markets and best for innovators.