The topic of the SEC Innovation Exemption for tokenized securities venues (TSVs) came up during SIFMA’s annual conference today. JP Morgan’s Eddie Wen asked if issuers have a right to say how their shares are represented and traded on tokenized platforms, and warned that liquidity tends to migrate toward channels with the fewest rules. Separately, SIFMA filed a comment letter on the SEC’s Innovation Exemption that puts detail behind both questions. Its two sharpest concerns are that issuers get one narrow chance to block a third party token of their stock, and that the trading volume caps apply per venue while anyone can open one.
The letter lands as the framework is already in motion. Two venues have published formal notices and could begin trading within weeks, and 16 issuers have already objected to one of them. The exemption took effect on publication on September 17 without prior comment.
On the issuer side it asks for a longer objection window, a named contact at the issuer, and a right to object after the initial period closes. On volume it asks the SEC to monitor aggregate trading across all venues and publish the numbers by stock. SIFMA says it understands the Commission intends to publish a list of TSVs on its website.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
