Andrew Cuomo says tokenization is outpacing U.S. regulation,SEC launches 5-year temporary Innovation Exemption
BIBIBI
AT A GLANCE
Andrew Cuomo stated that tokenization is moving faster than US regulation, and that regulatory clarity will affect where capital, talent, and financial infrastructure flow.
Article
Former New York Governor Cuomo: Tokenization has outpaced U.S. regulation; regulatory clarity will determine the flow of capital
PANews September 25 reported that former New York Governor and OKX board member Andrew Cuomo wrote in CoinDesk that the development of tokenization is outpacing the U.S. regulatory and legislative processes. Regulatory clarity is not only a legal and political issue, but will also affect the flow of investment, talent, and financial infrastructure. Cuomo stated that the U.S. Securities and Exchange Commission (SEC）September 17 introduced an “innovation exemption,” allowing eligible on-chain trading venues to trade tokenized U.S. stocks under specific conditions, providing a regulatory testing framework for traditional capital markets to move further on-chain. The exemption is a temporary measure, has a validity period of years, and requires trading venues to adopt a permissioned participation mechanism, limit the quantity and scale of tokenized stock trading, provide holders of tokenized stocks with the same rights and treatment as the corresponding traditional stocks, ensure that smart contracts are auditable and deployed on public blockchains, and...
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🔗5 years, and requires trading venues to adopt a permissioned participation mechanism, limit the quantity and scale of tokenized stock trading, provide holders of tokenized stocks with the same rights and treatment as the corresponding traditional stocks, ensure that smart contracts are auditable and deployed on public blockchains, and...
(Click the link below to read the full article)
🔗https://www.panewslab.com/zh/articles/01a0d905-e1fc-7461-b041-f90d335d9f21
Key points
01
Andrew Cuomo wrote in CoinDesk that tokenization is developing faster than U.S. regulatory and legislative processes.
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Cuomo said that regulatory clarity will affect the flow of investment, talent, and financial infrastructure.
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The article states that the U.S. Securities and Exchange Commission (SEC) introduced an “innovation exemption” on September 17.
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The article states that the exemption allows eligible on-chain trading venues to trade tokenized U.S. stocks under specified conditions.
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The article states that the exemption is a temporary measure with a term of 5 years and imposes requirements on participation mechanisms, transaction volume and scale, holder rights, smart-contract audits, and the blockchain used.
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The original text explicitly identifies Andrew Cuomo as the former Governor of New York State and a OKX board member.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Tokenized stocks are traditional stock-related rights represented by tokens on a blockchain. Cuomo’s core view is that these markets are developing relatively quickly, but U.S. regulation and legislation have not kept pace; the clarity of the rules will affect where capital, talent, and financial infrastructure choose to develop. The material also paraphrases an SEC“innovation exemption,” describing it as providing temporary space for certain on-chain transactions to be tested, while also imposing multiple restrictions.
Why it matters to readers
If the reported regulatory arrangement is accurate, eligible on-chain trading venues may have room to pilot tokenized US stocks; however, this is described in the material as a temporary and conditional measure and should not be construed as approval for all platforms or all tokenized stocks to trade.
Beginners should distinguish between “personal opinions,” “media reports,” and “formal regulatory documents.” This material provides clues about the regulatory direction, but does not constitute investment advice and is insufficient to prove that the relevant business has already been implemented.
Risks and unknowns
The materials provided do not include the SEC original announcement, so the formal name, publication date, full scope of application, and specific conditions of the “innovation exemption” cannot be independently confirmed.
The materials provided do not include the full text of Andrew Cuomo’s article published on CoinDesk, so all statements and their context cannot be verified.
Related Developments
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The main text is truncated at “and...”; subsequent conditions and restrictions are incomplete.
The materials do not specify which on-chain trading venues qualify, nor do they indicate that any existing platform has conducted trading on this basis.
The materials do not explain whether this regulatory arrangement has a direct impact on OKX the business, operations, or valuation.
The views in the title and body represent Andrew Cuomo's judgment; whether capital, talent, and financial infrastructure will move accordingly in the future remains unverified.
In the materials, the “September 17” and “5 year” were mentioned only in media reports and still require verification against official regulatory documents.
Related concepts
Tokenization
The process of converting a physical asset into a digital form or token that represents its value and ownership.
