Can companies stop third parties trading tokenized US shares?

A US experiment allows certain venues to trade tokenized stocks under temporary conditions. The most revealing dispute concerns third parties that put shares onchain without the company’s involvement. Investors still need to know who holds the share, what rights travel with the token and what happens if the company objects. Summary The SEC’s temporary exemption covers eligible venues trading tokenized US stocks, including products created by third parties with no affiliation to the underlying issuer. An issuer has 30 calendar days to object after receiving notice about third-party tokenisation under the order’s notice procedure. A venue that receives a qualifying objection cannot make the token available under the exemption and must amend its public notice within five business days. Investors need to establish who holds the underlying share and how voting, dividends and corporate actions reach the token holder. An issuer objection concerns whether the venue can trade the token under the exemption, while product terms determine how existing holders can exit. The US Securities and Exchange Commission has opened a conditional route for trading tokenized stocks on certain venues, with ...