arsheffield
The regulator has excluded "tokenized securities venues" (TSVs) from being classified as an exchange for a period of five years. As per an SEC press release, this exemption enables them to enable the trading of tokenized shares through "permitted, innovative automated market makers and liquidity pools." Providers of liquidity for these pools are likewise excluded from the definition of a dealer for the same period.
Trading will be allowed on a restricted basis, and the digital securities must provide holders with the same rights and benefits as conventional shares of a similar class.
If trading is stopped in the conventional equity market, trading of the related instrument on the TSV must likewise be interrupted. Additionally, venues must inform issuers ahead of time if they intend to initiate trading in digital representations of the issuers' securities—if these versions have been developed by third parties—and issuers can prevent such trading.
According to SEC Commissioner Paul Atkins, it is essential that this interim solution is succeeded by the establishment of consistent regulations enabling blockchain markets to stay a feasible avenue as our capital markets progress.
At present, the majority of tokenized shares is synthetic or derives from derivatives traded outside the U.S., which has led to discontent among certain issuers, according to the WSJ. Simultaneously, accredited investors in the United States can access various tokenized assets—namely shares in private funds and money market funds, along with commodities such as gold—while the New York Stock Exchange (NYSE) and Nasdaq are developing their own tokenization platforms.
source: wsj.com
Trading will be allowed on a restricted basis, and the digital securities must provide holders with the same rights and benefits as conventional shares of a similar class.
If trading is stopped in the conventional equity market, trading of the related instrument on the TSV must likewise be interrupted. Additionally, venues must inform issuers ahead of time if they intend to initiate trading in digital representations of the issuers' securities—if these versions have been developed by third parties—and issuers can prevent such trading.
According to SEC Commissioner Paul Atkins, it is essential that this interim solution is succeeded by the establishment of consistent regulations enabling blockchain markets to stay a feasible avenue as our capital markets progress.
At present, the majority of tokenized shares is synthetic or derives from derivatives traded outside the U.S., which has led to discontent among certain issuers, according to the WSJ. Simultaneously, accredited investors in the United States can access various tokenized assets—namely shares in private funds and money market funds, along with commodities such as gold—while the New York Stock Exchange (NYSE) and Nasdaq are developing their own tokenization platforms.
source: wsj.com