Andrew Cuomo said SEC has established a 5-year temporary exemption framework for tokenized U.S. stocks

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Former New York Governor: Tokenization is advancing faster than U.S. regulatory legislation

BlockBeats reported that September 25, former New York Governor and OKX board member Andrew Cuomo wrote in CoinDesk that tokenization of U.S. financial markets is accelerating, and the regulatory framework needs to keep pace with technological and market developments.

Cuomo noted that SEC on September 17 launched a temporary “innovation exemption” framework, allowing eligible on-chain trading platforms to trade tokenized shares of certain U.S.-listed companies under specific conditions for 5 years, providing room for experimentation as blockchain enters regulated capital markets.

Cuomo stated that the framework does not relax regulation, but rather allows the market to test new technologies within clear restrictions. These include licensing requirements for trading-platform participants; tokenized shares must grant investors the same rights and benefits as traditional shares; smart contracts must be audited and deployed on public blockchains; and trading in the corresponding tokenized shares must also cease when the underlying shares are suspended.

The U.S. Senate September 15 failed to advance the Digital Asset Market Structure Act (CLARITY Act), showing that disagreements over comprehensive digital-asset regulatory legislation remain, but the tokenization market will not stop developing because of a slower legislative process. Cuomo believes that regulatory certainty is not only a legal and political issue, but will also affect the future flow of capital, talent, and financial infrastructure.

Original link https://m.theblockbeats.info/flash/369031

Key points

BlockBeats reported that Andrew Cuomo published an article in CoinDesk stating that tokenization of U.S. financial markets is accelerating.
The article stated that SEC on September 17 launched a temporary “innovation exemption” framework allowing eligible on-chain trading platforms to trade tokenized shares of certain U.S.-listed companies under specific conditions.
The framework has a term of 5 years and requires trading-platform participants to be licensed, while tokenized shares must grant investors the same rights and benefits as traditional shares.
The article stated that the relevant smart contracts must be audited and deployed on public blockchains, and trading in the corresponding tokenized shares must also cease when the underlying shares are suspended.
The U.S. Senate September 15 failed to advance the Digital Asset Market Structure Act (CLARITY Act）。
Cuomo believes that regulatory certainty will affect the future flow of capital, talent, and financial infrastructure.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Tokenized shares represent and trade stock-related rights and interests on a blockchain. The article states that the United States is providing limited, conditional room for experimentation with such transactions, while disagreements over comprehensive regulatory legislation remain.

Why it matters to readers

If the framework described in the article is confirmed, compliant on-chain platforms and tokenized shares may gain room for pilot programs; Cuomo also believes that regulatory certainty will affect the flow of capital, talent, and financial infrastructure.

This is not a wholesale change to ordinary stock-trading rules, but an experimental framework subject to restrictions including licensing, audits, public blockchains, and linked trading suspensions.

Risks and unknowns

The evidence comes from BlockBeats’ account of Cuomo’s article and does not provide SEC official documents.
The formal scope of application, eligible assets, and application requirements of the temporary “innovation exemption” framework have not been confirmed by primary sources in the evidence.
The procedural record of the Senate’s failure to advance CLARITY Act has not been confirmed by primary sources in the evidence.
The evidence does not confirm whether any licensed platforms or tokenized-share products are already live.

Andrew Cuomo said SEC has established a 5-year temporary exemption framework for tokenized U.S. stocks

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