That makes tokenization a question for issuers today, even if you have no plans to tokenize.
Under the exemption, a venue must notify you before it trades a third-party token of your stock, and you have 30 calendar days to object. Not every token carries the same rights. Some represent the share itself, with voting and dividends. Others only track its price. In this webinar, our panel explains what the exemption means, how tokenized shares differ from synthetic tokens, and the practical steps your team can take now.
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Common questions regarding tokenization and the SEC innovation exemption
toggle answer for What is tokenization?
Tokenization records ownership of a share as a digital token on a blockchain. The share remains the same security, with the same legal status. What changes is how it is held, transferred, and recorded.
toggle answer for What is the SEC innovation exemption?
On September 17, 2026, the Securities and Exchange Commission (SEC) issued a five-year exemption that allows Tokenized Securities Venues to trade tokenized versions of US-listed stocks on-chain. It limits how many stocks can trade and how much volume. It also requires a tokenized stock to give holders the same rights as the traditional share.
toggle answer for Can someone tokenize my company's stock without permission?
Yes. Third parties can create tokens linked to a company's stock without its involvement. Under the exemption, a venue must give the issuer written notice before it trades a third-party token of that stock.
toggle answer for How long does an issuer have to object?
An issuer has 30 calendar days from the notice to object in writing. A timely objection stops that venue from offering the token. Once trading starts, there is no mechanism to halt it, so it pays to decide your position early.
toggle answer for What is the difference between a tokenized share and a synthetic token?
An issuer-sponsored tokenized share is the share itself. The holder is the shareholder of record, with voting and dividend rights. A synthetic token is a contract that tracks the share's price. Its holder may have no direct rights against the company.
toggle answer for Do tokenized shares carry voting rights and dividends?
Issuer-sponsored tokenized shares do. They carry the same rights as traditional shares of the same class. Synthetic tokens may not.
toggle answer for What role does a transfer agent play in tokenization?
The transfer agent keeps the official shareholder register. In an issuer-sponsored model, tokens are created and retired only against shares on that register. That keeps one accurate record of who owns the company. Equiniti serves 35% of the S&P 500 as transfer agent.
toggle answer for What should my company do now?
Start with three steps. Find out whether tokens linked to your stock already trade. Agree who will review a venue notice and make a decision within 30 days. Talk to your transfer agent about your register and your options.