Winners and losers of the SEC’s new tokenized stocks rules

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“Tokenization is coming to America,” said Robinhood chief executive Vlad Tenev after the SEC announced its Innovation Exemption last week — and it seems the markets looked kindly on the development.BTC and ETH soared over 10%, and Uniswap’s UNI token — a protocol that looks as it if could become prime real estate for tokenized stock trading — gained more than 30% in the days that followed.While the Securities and Exchange Commission has indeed greenlit tokenized stocks in America, most of the existing stock tokens fall outside of the new rules. The commission’s new five-year Innovation Exemption creates a path for certain venues to trade tokenized National Market System (NMS) stocks onchain without registering as a securities exchange, and for third parties to tokenize stocks — but only under a specific set of conditions. Tokens must give holders the same “rights and privileges” as the underlying shares and trading venues need to permission users and pools.Related: Kraken brings DeFi yield to tokenized stocks and ETFsNot all tokenized stocks are created equal. A token can look like a share and track the price of a share without providing the shareholder rights of a share. Under the...

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