SEC Commissioner Clarifies Boundaries of Potential Innovation Exemption

U.S. Securities and Exchange Commissioner Hester Peirce has sought to temper growing industry speculation about a potential “innovation exemption” that could allow tokenized stock trading, following recent reports regarding the proposal.

Responding to the coverage, she clarified that if such an exemption were to move forward, it would likely be tightly limited in scope. According to her remarks, it would cover only digital representations of existing equities that are already accessible in secondary markets.

She also emphasized that synthetic or price-tracking tokens would not fall under the framework, a restriction that could shape how third parties design and issue tokenized stock-related offerings.

Source: Hester Peirce