
Peter Schiff calls SEC tokenized stock announcement bearish for Bitcoin despite rally
The U.S. Securities and Exchange Commission (SEC) has issued a five-year conditional exemption allowing trading platforms to facilitate the liquidity pool trading of tokenized National Market System (NMS) stocks. This regulatory move permits platforms to trade these assets without registering as traditional exchanges, provided the tokens are fully backed by actual equities and grant holders full shareholder rights, including dividends and voting power. While the market initially reacted with a Bitcoin rally, critic Peter Schiff argued the development is bearish for Bitcoin, suggesting that tokenized equities offer a superior value proposition by combining traditional financial benefits with blockchain-based 24/7 trading and near-instant settlement. Conversely, proponents argue that the SEC's formal recognition of blockchain infrastructure validates the underlying technology and enhances the potential for composability within decentralized finance. By enabling tokenized stocks to function as collateral or liquidity pool assets, the exemption bridges the gap between regulated securities and digital asset ecosystems. The mandate requires platforms to notify issuers 30 days prior to trading, granting issuers the right to opt out of tokenization. This development marks a significant shift in how regulated securities interact with distributed ledger technology, potentially compressing settlement times from the current T+1 standard.







