Crypto versions of stocks could soon be widely traded in the U.S. for the first time after a decision by the Securities and Exchange Commission, clearing the way for a massive transformation of the U.S. stock market.

The long-expected move, announced Thursday by the agency, comes just says after the Senate failed to proceed with a bill that would set rules for the crypto industry. Regulators, including the SEC, had said that they would put rules in place to give crypto firms relief if the legislation wasn't enacted.

Now, it will be easier to offer "tokenized" versions of stocks to U.S. investors. The new versions of stocks could trade over blockchains, similar to cryptocurrencies like Bitcoin, but would represent shares in traditional companies.

Firms including Robinhood Markets and Payward's Kraken already offer tokenized stocks, but U.S. investors haven't been able to buy them.

The SEC is providing exemptions that won't necessarily bless the models that existing tokenized stock programs use.

For example, tokenized stocks must offer the same rights as traditional equities, including dividends and voting rights. Companies that issue the stock must have the right to object to having their stock tokenized.

Robinhood, for example, tangled with AMC Entertainment Holdings CEO Adam Aron after Robinhood provided a tokenized version of AMC's stock without the theater chain's involvement.

Proponents of tokenized stocks say they allow shares to be traded more quickly and easily than they are now, with instant settlement and an easier ability to trade 24-7 in the stock market. Traditional firms including the DTCC, Intercontinental Exchange, and Nasdaq have spent months preparing for the debut of tokenized stocks.

The regulatory relief offered by the SEC will exempt exchanges and dealers that offer tokenized securities from complying with all the rules that apply to those entities in the traditional markets.

"The Commission is not cementing today's technology as the standard for tomorrow," said SEC Chairman Paul Atkins in a statement.

"Instead, it is allowing the market to evolve, monitoring its development, and using that insight to inform a nimbler and future-ready regulatory framework," he said.