SEC postpones rollout of tokenized stock innovation exemption

The U.S. Securities and Exchange Commission has delayed the implementation of its proposed “innovation exemption” that would allow platforms to trade tokenized versions of U.S. equities. Under the draft rule, issuers of tokenized stocks must provide holders with the same rights as traditional shareholders, including dividends and voting privileges.

The pause follows feedback from hundreds of market participants who raised concerns about verifying ownership on semi‑pseudonymous blockchains and preventing unauthorized third‑party issuers from creating tokens tied to public companies. Industry leaders, such as Carlos Domingo of Securitize and Tom Farley of Bullish, publicly welcomed the SEC’s decision to take more time.

Data from RWA.xyz show that about $34 billion of real‑world assets have been tokenized to date, including roughly $1.55 billion in tokenized equities, though adoption has lagged earlier projections. SEC Commissioner Hester Peirce indicated the exemption would be limited to digital representations of equity securities. No final decision on changes to the proposal has been made.