‘Not for synthetics’ – SEC to limit innovation exemption scope for tokenized stocks
The post ‘Not for synthetics’ – SEC to limit innovation exemption scope for tokenized stocks appeared on BitcoinEthereumNews.com. The much-awaited innovation exemption for tokenized stocks will likely be limited in scope than previously expected. In a statement on X (formerly Twitter), SEC Commissioner Hester Peirce said the exemption will not cover synthetics. I’ve always expected that it’d be limited in scope & would facilitate trading only of digital representations of the same underlying equity security that an investor could purchase in the secondary market today, not synthetics. Source: X The innovation exemption was first floated last year. In mid-May, Bloomberg reported that the framework will be temporary and limited. It would have restrictions on volume caps, white-listed sellers and buyers, suggesting some form of KYC (Know Your Customer). The proposal will also extend to certain decentralized venues without the need for a broker-dealer license. However, it is not yet clea