SEC Commissioner launches research on 'innovation exemption' scheme for tokenized securities

Commissioner Hester M. Peirce of the US Securities and Exchange Commission stated that research has been initiated on an "innovation exemption" scheme for tokenized securities, allowing for limited trading and technical experimentation of certain tokenized securities. She believes that it is necessary to explore whether different types of securities tokenization experiments should be allowed under this framework, and consider whether issuers need to agree to third-party issuance of tokenized versions of their stocks to promote technological innovation while avoiding regulatory arbitrage. The SEC is evaluating multiple issues, including the coverage of information disclosure systems, compatibility of tokenized securities settlement rules, and applicability of regulatory authority without intermediary structures.