SEC Proposes New Rules for Stock Token Market Transparency
The stock token market is dominated by four key players: the issuer, broker, custodian, and blockchain. However, it's often unclear who stands behind a specific stock token, leading to potential risks for investors. A recent proposal from the US Securities and Exchange Commission (SEC) aims to change this by requiring clearer disclosure of these relationships.
According to the SEC, the issuer is typically a company created specifically for this purpose, often in a different country than the broker. This issuer promises economic exposure to a share price, but does not transfer ownership of the share to the investor. The counterparty is thus the issuer, not the listed company.
The proposal would overhaul the rules for registered transfer agents and require clearer disclosure of the relationships between these four parties. For example, Robinhood's press release on July 1, 2026, states that their stock tokens are 'tokenised debt securities issued by Robinhood Assets (Jersey) Limited'.
The deadline for comments on this proposal is November 3, 2026, and anyone can file a comment. This move aims to provide greater transparency in the stock token market and protect investors from potential risks.