SEC Delays Tokenized Stock Exemption Amid Industry Concerns
The US Securities and Exchange Commission (SEC) has delayed its proposed innovation exemption for tokenized stock trading, citing industry concerns over implementation.
According to Bloomberg, SEC staffers had reviewed a draft of the proposal, which was expected to be released during that week. The agency received feedback from hundreds of participants but did not alter the substance of its proposal.
The exemption would require platforms offering tokenized stocks to guarantee investors the same rights as traditional shareholders, including voting rights and dividends.
Market participants raised concerns about the possibility of unauthorized third parties issuing tokens without the consent of public companies and how ownership would be verified on semi-pseudonymous blockchain networks.