Bitcoin liquidations hit $320M after SEC stock plan delay

Bitcoin ( $BTC ) liquidations surpassed $320 million in longs on May 22 after the SEC unexpectedly delayed its tokenized stock plan.

The SEC delayed a plan on May 22 to provide broad exemptions for US crypto firms to trade tokenized assets linked to US stocks. The agency’s staff had been preparing to release an innovation exemption for tokenized stocks as soon as this week, according to people familiar with the matter.

The delay triggered a sharp move in derivatives markets. Crypto long positions worth approximately $320 million were liquidated in the hours following the announcement, with longs accounting for roughly $296 million of the total.

Why the SEC tokenized stock delay hit long positions so hard

Leveraged long positioning had been building in anticipation of a regulatory green light for tokenized equities. When the exemption was pulled back, traders positioned for a near-term catalyst were forced to exit. Bitcoin fell toward $76,000 during the session, its lowest print in approximately a week.

The tokenized stock market is already active internationally. Exchanges outside the US offer US stock tokens to non-residents, giving offshore users exposure to $AAPL , $TSLA and other US equities via blockchain.

An SEC exemption would have opened US-registered platforms to the same product, unlocking a market analysts have estimated at multiple billions of dollars. The first May outflow event for Bitcoin ETFs earlier this month, which also coincided with regulatory uncertainty dampening market sentiment.

The combined effect of ETF outflows and derivative liquidations reflects a market that had positioned more optimistically than the regulatory environment warranted. The Bitcoin (BTC) price page tracks live movements as the market digests the SEC’s delay and positions for what comes next on tokenized equities.