SEC Tokenized Stock Exemption Excludes Synthetic Types, Majority of Nearly $3B Market Inapplicable

PANews, September 17 - According to a statement from SEC Chair Atkins, the innovation exemption applies to tokenized NMS stocks that are tokenized by the issuer itself or on behalf of the issuer, or by a third party unaffiliated with the issuer; synthetic securities are not covered by the exemption. Per The Block, an SEC spokesperson said synthetic types "can remain in the wild," adding that there is little interest in a derivatives route in the U.S. market. The exemption takes effect on September 17, lasts five years, and expires on September 17, 2031. The report notes the current tokenized stock market size is nearly $3 billion, with the majority being excluded synthetic products.