Regulation· ★★★· neutral·

Cuomo: Tokenization Is Outpacing US Regulation, Clarity Will Decide Where Capital Flows

  • —SEC granted a five-year innovation exemption on September 17 for trading tokenized US equities
  • —Venues must participate under a licensing regime with limits on trading volume and number of trades
  • —Tokenized shares must carry the same rights as the underlying stock and halt trading alongside it
  • —Cuomo: regulatory clarity will determine where banks build infrastructure and deploy capital
Why it matters: The temporary nature of the SEC exemption leaves uncertainty: permanent rules will decide whether institutional capital flows into tokenized equities in the US.
Source: PANews