Tokenized stocks must carry the same shareholder rights, OKX US CEO says

OKX US CEO Roshan Robert asserted that tokenized National Market System (NMS) stocks must fully preserve the rights and privileges of traditional shares, encompassing investor interest, dividends, voting rights, and claims on assets during liquidation. This declaration coincides with the U.S. Securities and Exchange Commission (SEC) initiating a five-year exemption on September 17, allowing specific venues to trade tokenized U.S. listed stocks via permissioned automated market makers and liquidity pools. The SEC's order, set to expire on September 17, 2031, explicitly mandates that tokenized stocks provide equivalent shareholder rights, thereby excluding products that offer only synthetic price exposure. Robert emphasized that this parity is crucial for investor protection and to prevent the fragmentation of traditional and tokenized markets into products with differing rights. The exemption also requires a 30-day written notice to issuers before trading unaffiliated tokenized stock, enabling companies to object, a process exemplified by AMC Entertainment's challenge to a Robinhood product. While this SEC test is temporary, the insights gained over this period will inform potential adjustments to Regulation NMS and determine the permanence of tokenized stock regulations, marking a pivotal phase for the evolution of regulated tokenized equity markets.