SEC Commissioner Hester Peirce narrowed the scope of the agency’s proposed innovation exemption for tokenized stocks. She ruled out synthetic instruments and limited the carve-out to digital representations of real equity shares.

Her clarification settled a debate that erupted across tokenization firms. A single word in her earlier post had triggered confusion over which on-chain products would qualify.

What Peirce Means for Tokenized Stocks

Peirce wrote on X that the tokenized stock framework would cover only listed equities. The carve-out applies to shares investors can already buy on the secondary market.

“I’ve always expected that it’d be limited in scope & would facilitate trading only of digital representations of…