SEC mandates shareholder rights for tokenized U.S. stocks

Bitget Wallet COO Alvin Kan noted that the true value for investors lies in legal protections rather than 24-hour trading or rapid settlement. Under the new SEC exemption, tokenized assets must grant holders the same privileges as traditional shareholders. This effectively disqualifies products that function as contracts for price tracking without conferring actual equity. Companies also gain the power to block the unauthorized tokenization of their securities by third parties, providing issuers with greater control over their assets on blockchain platforms.

Operational space for institutions

While the exemption offers a path for pilot programs, it remains a temporary measure with specific volume and symbol limits. Kan emphasized that while blockchain can theoretically shorten settlement times and enable fractional ownership, it does not guarantee a superior investment product. If a system relies on heavy permissioning or multiple intermediaries, the technology merely updates the back-end infrastructure without improving the user experience. The SEC is utilizing its existing authority to test these systems, bypassing the need for immediate congressional action, as evidenced by the recent failure of the Digital Asset Market Clarity Act to clear a Senate procedural vote. For market participants, the current framework serves as a period of regulatory observation rather than a final legal standard.