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💡Stock trading on-chain? SEC’s wild new idea

PLUS: Tokenized Tesla & Nvidia could be next, Europe pushes back on stablecoins, altcoins dominate Binance, and Saylor doubles down on Bitcoin as fire + oil.

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Cryptopolitan News
October 01, 2025 • Estimated Reading Time: 9 minutes

The SEC is quietly proposing an idea that could change Wall Street trading as we know it: Allowing shares in companies like Tesla and Nvidia to trade on blockchain networks as tokens.

👉 In practice: that means you could buy Tesla stock just like you buy ETH — 24/7, instant settlement, global access.

So — What’s happening?

The SEC has been discussing the move with market participants. Coinbase and Robinhood, for example, are lobbying hard to win early approval with the aim of listing tokenized stocks on their platforms.

Big banks and brokers loathe the idea, it would undermine the fat margins they earn from that plumbing as is (clearing houses, settlement lags, middleman fees).

Why now?

This push is part of the Trump administration’s crypto-focused regulatory agenda. After ETFs shattered the initial hurdles, tokenized stocks are the next frontier. Rather than waiting 240 days for approval under the old rules, the new generic listing framework is like going from a complex written test to checking off boxes. Tick the boxes, list the product.

But it’s not all green. The SEC just suspended trading in QMMM Holdings after its stock jumped 959% over three weeks on a social-media-fueled pump related to a “crypto treasury” announcement. It is a reminder of why regulators are tippy toeing, they want tokenization without turning equity markets into meme-coin land.

The $50 trillion question

But the value of American stocks and equity is over $50 trillion. If as much as a small fraction goes on-chain, not to mention being locked up, it would be larger than the entire crypto industry ($3.8T).

ETF inflows were evidence that Wall Street wants exposure. Tokenized equities might provide it wants new rails.

💡 Quick Explainer: Tokenized Stocks

  • One token = one share, 100% backed by custody.

  • Tradable 24/7, even when Nasdaq is not awake!

  • Can tap into DeFi — collateral for lending, trade and cross-border settlement.

  • No geographical restrictions, make stocks globally accessible (if regulations permit)

What we’re watching:

Which platforms capture first-mover advantage (Coinbase vs. TradFi giants). Whether banks wage an even more aggressive battle to block it, or switch gears to try to join in. Timeline: new filings are already being re-drafted but it’s all SEC bandwidth and politics with launches.

This is more than just a product tweak. It’s the beginning of a Wall Street-DeFi convergence that would reframe what “stock trading” even means.

🏛 Regulation Watch

The European Central Bank (ECB) is pitching a ban on multi-issuance stablecoins, tokens such as USDC or the Paxos Dollar that are issued in several jurisdictions under a common reserve model.

The European Systemic Risk Board, led by Christine Lagarde and dominated by central bank governors, approved last week a recommendation to fence in the model, one that could come into conflict with issuers such as Circle and Paxos.

👉 Though not legally binding, the ESRB’s decision puts pressure on regulators across the EU to impose the ban or explain why they won’t.

Why it matters:

  • Most stablecoins are pegged to the dollar and used as a benchmark in crypto markets. The overwhelming majority is held in U.S. assets, not Europe.

  • The ECB has taken this as a challenge to monetary sovereignty. A flood of dollar-backed stablecoins might undermine the euro’s position in savings and payments.

  • It’s also a shot across the bow at MiCA (the EU’s big crypto law), which was supposed to bring clarity. If Europe begins to back-pedal, the bloc could lose its role as global rule-setter.

💡 Quick Explainer: Multi-issuance stablecoins

A provider (for instance, US and EU-based company) issues that stablecoin in several countries but only uses one central Reserve. The ECB desires a system in which EU tokens are necessarily redeemable for reserves inside the EU.

Translation: “If you’re coming to play in Europe, bring the cash here.”

The bigger picture

The ECB is also developing a digital euro of its own (CBDC) and views dollar-backed coins as direct competition. Officials say such coins take capital offshore and risk undermining EU banking.

But there’s pushback: Some EU regulators (such as France and Finland) have supported multi-issuance previously, and critics caution that the ECB’s move undermines confidence that MiCA just gave it a few months ago.

👀 Are you watching this?

While Altseason seems cancelled, there is still some hope.

Binance Altcoin Volume Hits 82%

Altcoins now account for a record 82.3% of all Binance trading volume, surpassing the previous high set during the bull run earlier this year at 76%.

  • ASTR is up 250% in a week, SOL, ETH and PUMP also gained.

  • The Altcoin Season Index is at 62% — 75% marks official “altseason.”

  • Investors have been pouring gas on the fire, with institutions putting $4B into Ether ETFs and over $1B into Solana/XRP funds.

 🐤 Top tweets

Headline picks: By our Editor in Chief

Episode 16 Editor GIF by The Simpsons

🎭 Culture Corner

Michael Saylor claims that Strategy’s goal is nothing less than constructing a $1 trillion Bitcoin treasury, equating BTC to fire, electricity and oil. The firm already owns 640,000+ BTC but critics label the move “financial nonsense” and warn of shareholder dilution.

Saylor shrugs it off: every milestone has attracted new skeptics, and he says Bitcoin is the underpinning of a new financial era.

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