SEC's Peirce tempers expectations over tokenized stocks exemption
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An executive at tokenization platforms Superstate said the stricter approach suggested by Hester Peirce would enable DeFi to expand without compromising rules in traditional capital markets.
Key facts
However, it hasn’t boomed as rapidly as some financial institutions have expected, including Citibank and McKinsey & Co, which predicted in 2022 and 2024 that the tokenization sector would become
Data from RWA.xyz shows that $1.48 billion worth of stocks are tokenized onchain, including shares linked to stablecoin issuer Circle, Bitcoin buying firm Strategy and Google (GOOG)
Carlos Domingo, CEO of Securitize, also said the approach would mitigate the risk of ownership fragmentation in the tokenization market
Robert Leshner, the CEO of crypto tokenization platform Superstate, said this stricter approach would enable decentralized finance and tokenization to expand “without compromising the standards that make the USA the center of capital markets
Summary
US Securities and Exchange Commissioner Hester Peirce has told the crypto industry to cool its expectations about a potential “innovation exemption” to allow tokenized stock trading after a report earlier this week about what it could entail. In a post to X on Thursday, Peirce said her expectation has always been that any exemption would be “limited in scope” by only permitting “digital representations of the same underlying equity security that an investor could purchase in the secondary market today.” Peirce said she doesn’t expect synthetic tokens to be included, which would make it more challenging for third parties to offer stock-price tracking tokens under the exemption. Data from RWA.xyz shows that $1.48 billion worth of stocks are tokenized onchain, including shares linked to stablecoin issuer Circle, Bitcoin buying firm Strategy and Google (GOOG).