The regulator delays a proposed framework for blockchain-based equities amid concerns about unauthorized digital share representations.
The Securities and Exchange Commission has delayed its planned exemption for tokenized stocks, citing concerns over third-party issuers creating digital representations of equities without corporate approval. The proposal aimed to allow crypto firms to trade blockchain-based versions of traditional securities but faced pushback from market participants and former regulators.
Discussions with stock exchange officials and industry stakeholders revealed unease about potential complications in dividend distribution and shareholder voting. The exemption, initially expected this week, would have been limited to existing equities but raised broader questions about regulatory oversight in decentralized markets.
No immediate market reaction was reported, though the delay signals heightened scrutiny of blockchain integration in mainstream finance. The SEC continues to evaluate feedback before finalizing the framework.