The SEC has postponed a proposal to allow exemptions for tokenized stocks, citing limited scope and regulatory clarity needs.
The Securities and Exchange Commission has postponed a plan to introduce an ‘innovation exemption’ for tokenized stocks. The delay follows comments from Commissioner Hester Peirce, who indicated the exemption would be narrowly focused on digital representations of equity securities already available in secondary markets.
In January, the SEC classified tokenized securities into two categories: custodial and synthetic. Custodial tokenized stocks are issuer-backed and held by regulated intermediaries, granting full shareholder rights. Synthetic versions, however, offer only price exposure without direct ownership of underlying shares.
The decision reflects ongoing regulatory caution as the agency evaluates the risks and benefits of digital asset integration in traditional markets.