U.S. Securities and Exchange Commission (SEC) member Hester Peirce has urged the crypto industry to lower expectations regarding "innovative exemptions" that would allow for the trading of tokenized stocks. In a statement following a Bloomberg report, Peirce emphasized that the scope of any such exemptions would be limited. This is reported by Cointelegraph.com reports .
According to Ms. Peirce, the new rules are intended to permit only digital representations of stocks that investors can currently purchase on the secondary market. She stated that synthetic tokens would not be included in this exemption, making it difficult for third parties to offer tokens that track stock prices.
Currently, according to RWA.xyz data, $1.48 billion worth of stocks are tokenized on blockchain networks, including securities from companies such as Circle, MicroStrategy, and Google (GOOG). Financial institutions like Citibank and McKinsey & Co have predicted that the tokenization sector could become a trillion-dollar market by 2030.
Superstate CEO Robert Leshner believes that such a strict approach will allow the decentralized finance (DeFi) and tokenization sector to expand without compromising U.S. capital market standards. Securitize head Carlos Domingo also noted that this approach reduces the risk of fractional ownership issues.
The SEC is currently consulting with hundreds of market participants to shape rules for tokenized trading. Final details have not yet been confirmed and may change before the exemptions are implemented.
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