SEC Commissioner Hester Peirce has clarified that the “innovation exemption” for tokenized stock trading would only apply to digital representations of underlying equities.

The U.S. SEC is putting the finishing touches on a framework that would allow digital, blockchain-based versions of publicly traded stocks to trade on crypto platforms.

SEC Commissioner Hester Peirce clarified the scope of a proposed innovation exemption for onchain trading of tokenized NMS stock, [cautioning against mischaracterization of the…