On September 17, the US Securities and Exchange Commission introduced an Innovation Exemption. This five-year conditional policy allows trading platforms to facilitate liquidity pool trading of tokenized National Market System stocks without registering as traditional exchanges.
Under the new rules, tokenized assets must be fully backed by actual equities and provide shareholders with identical rights, including voting power and dividends. Synthetic products that only track price movements are excluded from this exemption.
Platforms must notify issuers at least 30 days before trading commences, and issuers maintain the authority to prohibit the tokenization of their securities. The framework enables 24/7 trading and near-instant settlement.
Peter Schiff, a known critic of Bitcoin, argued that the development is bearish for the cryptocurrency. He suggests that tokenized stocks offering dividends and voting rights may diminish the appeal of Bitcoin as an investment.
Despite Schiff's assessment, Bitcoin traded at approximately $81,290 on September 19, marking a 1.6% increase. Proponents of the technology argue that blockchain-based infrastructure validates the crypto ecosystem and enhances DeFi utility.
