SEC Opens Path for Tokenized US Stocks With Innovation Exemption

The significance lies less in the exemption itself than in its carve-outs: synthetics are excluded and issuers retain veto power over their own shares, which keeps tokenized equities tethered to the existing issuer-broker structure rather than creating a parallel market. That design choice, arriving after the Clarity Act stalled, signals the SEC is willing to move administratively where legislation has not. The open question is whether issuer vetoes become routine or rare, and whether qualifying venues attract meaningful volume without price-tracking synthetics.