SEC new tokenized stock rules create narrow path for compliant products

The U.S. Securities and Exchange Commission has opened a temporary fiveyear path for tokenized stocks, but the new framework applies only to products and trading venues that meet specific requirements. Under the SEC’s Innovation Exemption, eligible tokenized National Market System stocks must give holders the same rights as the underlying shares, including dividends and voting rights. That means many existing stocktoken products, especially synthetic versions, may not qualify. The article examines which companies are best positioned under the new rules. Coinbase and Ondo Finance appear closer to the SEC’s model because of their focus on backed securities and market infrastructure, while Uniswap could benefit from its permissioned pool design. Robinhood and Kraken may need to change their products more significantly because their current token offerings do not provide the full shareholder rights required by the exemption. The SEC says the temporary rule is intended to let the market develop while regulators evaluate future rulemaking. The broader question is whether tokenized stocks can offer practical advantages such as faster settlement, broader access, or 24/7 trading compared with traditional brokerage systems.