The U.S. Securities and Exchange Commission has reportedly delayed a plan that could let crypto firms offer tokenized versions of U.S. stocks.
The plan, known as an innovation exemption, had been expected as soon as this week, Bloomberg has learned, citing people familiar with the matter.
SEC staff had prepared and reviewed a draft, but the timing was pushed back after market participants raised concerns.
The main sticking point appears to be third-party tokens created by a crypto platform without the public company issuing or approving them.
Per Bloomberg's sources, the SEC draft would require these platforms to give token holders the same basic rights as normal shareholders, including dividends and voting rights.
If the token moves between blockchain wallets, platforms may struggle to know who should get dividends, who can vote and whether restricted overseas users own the token.
Commenting on the news, Carlos Domingo, founder and CEO of Securitize, a tokenized securities platform, wrote in an X post that the delay was a positive step because the SEC needs to make sure any exemption applies only to the right kinds of tokenized stocks.
Carlos Domingo
The delay doesn't mean the SEC has killed the plan, though. Bloomberg's sources say the agency hasn't decided to change the draft proposal, but is taking more time after talks with exchanges and other market participants.
UPDATE (May 23, 9:51 UTC): Adds comments from Securitize founder Carlos Domingo