The US Securities and Exchange Commission (SEC) has reportedly postponed its planned exemption framework for tokenized stock transactions.
According to Bloomberg, one of the main concerns behind the postponement was the possibility of allowing the buying and selling of stock tokens issued by third parties without the permission of publicly traded companies.
The plan aimed to create a regulatory framework for representing and trading traditional stocks on the blockchain. However, former regulators pointed out that such products carried significant uncertainties regarding investor rights.
It was noted that issues such as dividend payments, voting rights, and shareholder identity verification pose both technical and legal challenges that are difficult to resolve on anonymous or pseudonymous blockchain networks.
Following this development, Hyperliquid ($HYPE), a decentralized cryptocurrency exchange heavily weighted towards real-world assets (RWA), experienced a sharp price drop.
*This is not investment advice.