India, Sept. 17 -- The U.S. Securities and Exchange Commission on Thursday unveiled a five-year exemption allowing platforms to facilitate trading in blockchain-based, or tokenized, stocks and other securities without complying with many rules that apply to traditional stock exchanges such as Nasdaq and the NYSE.
The exemption also covers liquidity providers in tokenized stocks, while platforms must notify companies before listing tokenized versions of their shares and cannot proceed if issuers object. Synthetic tokens that provide stock exposure through derivatives or other products will not qualify.
The SEC said tokenized securities must retain the same rights and privileges as traditional shares, including dividend and voting rights.
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