SEC'S TOKENIZATION EXEMPTION SPARKS QUESTIONS OVER WHICH BLOCKCHAINS QUALIFY

Summary from the TLDR Crypto newsletter

The SEC's tokenization exemption has introduced definitional uncertainty around what qualifies as a "public and permissionless" blockchain, with Canton Network (a private permissioned chain used by Goldman Sachs and other institutions) and Ethereum L2s both sitting in ambiguous territory. Only chains meeting that threshold benefit from the exemption, putting pressure on the SEC to clarify whether institutional permissioned infrastructure or L2s with centralized sequencers can qualify. Companies are also objecting to having their equity tokenized without consent, a question the exemption's current framing leaves unresolved.