SEC’s Hester Peirce expects innovation exemption to apply narrowly to onchain equity products
SEC Commissioner Hester Peirce says the innovation exemption will cover genuine onchain equity products with shareholder rights, excluding synthetic tokens.
➤ SEC Commissioner Hester Peirce stated the 'innovation exemption' will narrowly apply to onchain equity products with actual shareholder rights, excluding synthetic tokens. ➤ The exemption allows experimentation with tokenized real securities under strict operational limits, such as volume caps and allowlisting, and is not a broad green light for all tokenization. ➤ This clarification provides traditional financial institutions with clearer guidance on SEC-approved blockchain-based equity offerings, while most crypto-native platforms may not qualify without facilitating genuine ownership of registered securities.