SEC delays tokenised stock exemption proposal

The U.S. Securities and Exchange Commission reportedly postponed plans to release a proposed “innovation exemption” designed to support tokenised stock trading platforms.

According to reports, the proposal would have allowed broader experimentation with blockchain-based equity trading under a modified regulatory framework for digital securities.

The SEC reportedly delayed the rollout after stock exchange officials and market participants raised concerns about implementation, investor protections and the handling of shareholder rights on blockchain networks.

Under the proposed framework, tokenised stock platforms would reportedly need to ensure investors receive the same rights as traditional shareholders, including dividend payments and voting privileges.

Industry participants also warned about the potential emergence of unauthorised third parties issuing tokenised shares without approval from listed companies.

Additional concerns focused on how ownership verification would function on semi-pseudonymous blockchain systems where wallet identities are not always publicly tied to verified individuals.

The delay comes as Wall Street institutions and crypto firms continue increasing interest in tokenisation, particularly around tokenised equities, stablecoins and real-world assets.

Data from RWA.xyz reportedly showed approximately $34 billion worth of real-world assets have already been tokenised, including roughly $1.55 billion in tokenised equities.

Several crypto executives supported the SEC’s decision to move cautiously, including Carlos Domingo, who said regulators should ensure exemptions apply only to appropriate instruments before implementation.

Hester Peirce recently said any exemption would likely remain limited in scope and primarily support digital representations of traditional equity securities rather than fully synthetic tokenised assets.