Morning Minute: SEC Reverses Course on Tokenized Stocks, HYPE Soars
The SEC is expected to permit third-party platforms to tokenize stocks without needing issuer consent, reversing its strict January 2026 guidance. Previously, issuer-approved tokenization was required, leaving third-party platforms in a legal gray area. If formalized, this policy change would allow platforms like Kraken’s xStocks and Robinhood’s tokenized equities to operate more freely. The tokenized securities market has grown 200% year-over-year to $30 billion, with major institutions launching tokenized products. Meanwhile, Strategy purchased 24,869 BTC worth about $2.01 billion, mostly funded by issuing preferred stock, but Bitcoin traded about 5% lower despite the buy. Spot Bitcoin ETFs also saw net outflows, coinciding with rising US Treasury yields and increased odds of a rate hike. Iran launched "Hormuz Safe," a state-run maritime insurance service accepting Bitcoin, aiming to bypass traditional banking for transit coverage in the Strait of Hormuz. The venture positions Bitcoin as Iran’s primary financial workaround, though users may incur OFAC-related risks. A group of nine Polymarket accounts won $2.4 million with a 98% win rate by betting on US military actions in Iran, raising suspicions of insider trading.
