SEC'S TOKENIZED STOCK EXEMPTION IS NARROWER THAN THE MARKET THINKS

Summary from the TLDR Crypto newsletter

The market is overreading the SEC's Innovation Exemption, which only covers two models: issuer-native tokenization, where a transfer agent records actual shares onchain, and third-party custodial tokenization, where a token carries the same rights as the underlying stock, including dividends and voting. Synthetic trackers, derivatives, and equity perps like HYPE or LIT don't qualify, and while Ondo's custodial tokenization approach has a legitimate connection, Backpack's rallying BP token is a redeemable "tokenized claim" on an SPV rather than an Article 8 security entitlement with full shareholder rights, so it doesn't yet fit the exemption. Infrastructure more directly aligned with the framework includes Superstate, Securitize, Figure, DTCC, DinariGlobal, and Ondo.