- According to the latest report, the US Securities and Exchange Commission has reportedly delayed its decision to grant innovation relief to tokenized stocks.
- On May 22, the Commissioner of the Securities and Exchange Commission Hester Pierce She shared her perspective on An innovation exemption has been considered for cross-chain trading of NMS token shares.
- Despite unclear regulation, the token asset market has risen to over $1.5 billion in distributed value.
On May 22, the SEC reportedly delayed its plan to grant a shot Innovation exemption for online trading of token sharesQ.
According to relevant sources, the draft framework is ready and is expected to be presented this week. However, the agency decided to postpone the issuance in order to review comments received from exchanges and traditional market entities.
While on the one hand, the United States. Officials are developing a key regulatory framework, the CLARITY Act, and the delay in the innovation exemption for token shares has sparked debate in the community. It is also a classic example of the continuing tension between the digital assets sector and the traditional financial sector.
This report comes after a previous report stating that second It was preparing to approve lenient rules for trading digital versions of stocks directly on the blockchain.
Hester Pearce explains the scope of the tokenized stock exemption
Tokenized shares are digital copies of shares offered by publicly traded companies that are issued on the blockchain. These shares can be offered by companies such as Apple or Tesla. These tokens use distributed ledger technology to prove ownership of the underlying shares.
Unlike synthetic derivatives, tokenized shares are created to provide better security along with trading experience. These digital versions of shares can provide rights to receive dividends. However, some critics still raise concerns about these tokens being packaged by third parties without obtaining permission from the company that issued the original stock.
On May 22, Hester Pierce, Commissioner of the Securities and Exchange Commissionshared a post on
Pearce stressed that the exemption is unlikely to change the entire ecosystem overnight. However, it will open the door for tokenized assets in the market while ensuring the safety of investors.
The token stock market is worth over $1.5 billion in total value
Amidst the token boom Real World Assets (RWAs) In the market, token shares have also seen impressive growth. Although the regulatory frameworks for tokenized shares are unclear, the total distributed value of tokenized shares has crossed the $1.53 billion mark. There are major blockchain networks such as Ethereum and Solana, which supports the growth of premium digital assets.
(source: rwa.xyz)
As of now, the token issues of Tesla and Nvidia shares have attracted the attention of many investors.
The rise in token shares comes amid the growing adoption of real assets (RWAs), which include digital assets such as securities and other assets. The total market value of tokenized RWAs has risen to more than $33 billion.
Traditional trading groups raise objections to the concept of token shares
Although adoption of token shares has been slow, traditional trading groups have raised questions about granting token shares exemptions. The Securities Industry and Financial Markets Association (SIFMA) previously asked the SEC to deny or limit these exemptions.
In the official letter, SIFMA male “When portfolio providers provide broker-like aggregator services in connection with the purchase or sale of securities, they should be subject to the registration requirements and other basic investor protections imposed by the Exchange Act and should not be granted broad exemptions from established obligations.”
“However, such evaluations must be based on a comprehensive analysis of the functions they perform, rooted in securities regulation, case law, and SEC guidance,” he added.
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