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SEC’s Hester Peirce says tokenized stock exemption would be narrowly tailored
The SEC's forthcoming tokenization sandbox will cover real shares on blockchains, not synthetic tokens that mimic stocks without actual ownership rights.
SEC Commissioner Hester Peirce said the proposed innovation exemption for tokenized stock trading is being misinterpreted, stressing that it would be limited in scope.
In a statement on X, she noted that the concept would apply only to tokenized forms of existing secondary market equities and would not extend to synthetic assets.
I appreciate the interest in–but not the hyperbole about–the contemplated innovation exemption for the onchain trading of tokenized NMS stock. Keep in mind: I've always expected that it'd be limited in scope & would facilitate trading only of digital representations of the same…
— Hester Peirce (@HesterPeirce) May 21, 2026
Peirce’s statement addressed growing speculation around a potential SEC innovation exemption for tokenized equities following a Bloomberg report suggesting the framework could be introduced as early as this week.
The proposal would allow blockchain-based tokens tied to publicly traded shares to be issued and traded on decentralized platforms, including by third parties outside traditional issuer control.
While the tokens would track stock prices, they may not include shareholder rights such as voting or dividends unless platforms choose to offer them, according to the report.