SEC’s Hester Peirce expects innovation exemption to apply narrowly to onchain equity products
The SEC's Hester Peirce has clarified that the upcoming innovation exemption will be limited to genuine onchain equity products. This means that only digital representations of actual shares with full shareholder rights will qualify, excluding synthetic tokens that do not confer ownership. The exemption aims to differentiate between true equity products and derivatives that merely track stock prices.
- ▪The SEC's innovation exemption will apply narrowly to genuine onchain equity products.
- ▪Synthetic tokens that mimic stocks without actual ownership rights are excluded from this exemption.
- ▪Genuine onchain equity products will allow holders to vote and collect dividends, similar to traditional shares.
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SEC’s Hester Peirce expects innovation exemption to apply narrowly to onchain equity products The SEC's forthcoming tokenization sandbox will cover real shares on blockchains, not synthetic tokens that mimic stocks without actual ownership rights. Share Add us on Google by Editorial Team May. 22, 2026 (function () { var s = document.currentScript; var wrapper = s && s.closest ? s.closest('.cb-sevioads-inarticle') : null; var inMobile = wrapper && wrapper.closest('#mobile-articles'); var inDesktop = wrapper && wrapper.closest('#desktop-articles'); if (inMobile || inDesktop) { var isDesktopVp = window.matchMedia('(min-width: 768px)').matches; var matches = (inMobile && !isDesktopVp) || (inDesktop && isDesktopVp); if (!matches) { var sevioDiv = wrapper.querySelector('.sevioads'); if…
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