SEC Chairman Atkins: Exemption for tokenized stocks does not cover composite securities

SEC Chairman Atkins stated that tokenized NMS stocks eligible for innovation exemptions must be tokenized by the issuer itself or on behalf of the issuer, or by a third party unrelated to the issuer, and synthetic securities are not covered by the exemption. The SEC spokesperson stated that synthetic securities can continue to remain in the wild and said that the US market has little interest in the derivatives route. This exemption will take effect from September 17th and last for five years until September 17th, 2031. The current size of the tokenized stock market is nearly 3 billion US dollars, most of which are excluded synthetic products. (Source: The Block)