Do Canton and Ethereum L2s qualify under the SEC tokenization exemption? See the "public and permissionless" test, 3 TSV plans, and why 22 firms object.
- The SEC's tokenization exemption for trading U.S. stocks on blockchains is facing scrutiny regarding which networks qualify as 'public and permissionless'.
- Three firms plan to launch tokenized stock venues on Canton Network and Ethereum L2s, but significant industry debate and company objections are emerging.
- The SEC has not yet approved specific blockchains, leaving regulatory uncertainty around the future of on-chain stock trading in the U.S.
Topics: Legal regulatory, Blockchain usage, Institutional adoption, Securities law classification, Layer 2 scaling, Onboarding prime brokerage
Tags: #sectokenizationexemption #cantonnetwork #ethereuml2s #tokenizedstocks #publicandpermissionless #tokenizedsecuritiesvenuestsvs #companyobjections #blockchainclassification #regulatoryuncertainty