Why this investment bank expects little demand for tokenized stocks despite SEC’s new trading rules
Source: CoinDesk ·
From the source
TD Cowen expects limited demand for tokenized stocks despite new SEC rules opening a path for trading outside traditional markets. The Securities and Exchange Commission (SEC) opened a new path for tokenized stock trading in the U.S. last week, adding momentum to a technology that has swept through financial markets over the past year. TD Cowen, however, doesn’t expect investors to rush through the door. The agency’s new Innovation Exemption creates a five-year framework for qualifying tokenized securities venues to operate automated market maker pools without registering as exchanges. Certain liquidity providers can also avoid dealer registration, subject to conditions. The move came just days after the Clarity Act failed to advance , leaving broader crypto market structure legislation stalled. But Reid Noch, vice president of U.S. equity market structure at TD Cowen, expects the new market to remain small, at least for now. “We expect limited near-term adoption among both domestic…