SEC Delays Tokenized Asset Exemption Over Third-Party Token Concerns!

The SEC has delayed its anticipated innovation exemption for tokenized assets, Bloomberg Law reported, citing people familiar with the matter. A draft had already been created and reviewed by staff, but discussions with stock exchange officials and market participants have surfaced a key sticking point: third-party tokens issued without the backing or consent of the public companies whose equity they purport to represent.

Former regulators are pressing on whether tokenized assets can reliably carry the same rights as regulated securities — dividends, voting rights — given that tokens can change hands freely across blockchain networks without a centralized record.