Overview
- The SEC’s Investor Advisory Committee voted to recommend narrow exemptions that permit limited on-chain trading of equity tokens under strict conditions.
- Required safeguards include mandatory disclosures, routine third-party supervision, and a duty to seek the best terms for investors’ orders.
- The committee reaffirmed that tokenized equities are securities under U.S. law, necessitating protections parallel to those in conventional markets.
- The panel cited potential benefits such as atomic delivery-versus-payment and embedded ownership records that reduce reliance on intermediaries.
- The recommendation warns of unfamiliar risks and possible higher costs, as SEC Chair Paul Atkins signals work toward formal rules and a potential innovation exemption for limited trading.