SEC Greenlights Tokenized Stocks with Full Rights

The Securities and Exchange Commission (SEC) has introduced a five-year pathway for tokenized US stocks, but with a crucial twist. According to Alvin Kan, COO of Bitget Wallet, the key difference between tokenized stocks and traditional shares lies in their underlying rights.

A token that tracks a stock price is not the same as owning the stock, said Kan. Tokenized National Market System (NMS) stocks must grant holders the same economic, voting, dividend, and liquidation rights as their traditional share equivalents.

This exemption applies to tokens representing direct shares, custodial claims, or synthetic contracts. However, it excludes synthetic products that offer only price exposure without attaching any of these rights.

The SEC's order remains open for modification and contains limits on trading symbols and volume. It is designed to provide temporary regulatory clarity for institutions testing blockchain-based systems.