SEC Tokenized Equity Exemption Revives Synthetic vs. Direct Stock Debate

The exemption matters less for what it permits than for the design question it forces issuers to answer. Synthetic structures are faster to launch but introduce counterparty and tracking risk; direct claims carry heavier transfer-agent, custody and disclosure obligations. That trade-off, not the exemption itself, will determine which tokenized equities gain institutional traction. Whether issuers converge on one model or the market splits by asset type is the open question.