SEC Commissioner Hester Peirce clarified her position on synthetics in crypto markets, directing observers to [an SEC staff statement on tokenization](https://x.com/HesterPeirce/status/2057848784856440957) that differentiates between multiple categories of token-based securities. Peirce's statement draws a line between tokenized versions of issuer-sponsored stocks, tokenized stocks held by SEC-registered firms for customers, and synthetic instruments that provide exposure to equities without direct ownership.

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

SEC Commissioner Hester Peirce says the innovation exemption will cover genuine onchain equity products with shareholder rights, excluding synthetic tokens.