SEC Chair Paul Atkins Clarifies Distinction Between Tokenized Stocks and Synthetic Products

SEC Chair Paul Atkins emphasized that tokenized stocks must retain the same rights as underlying assets, such as voting and dividends, to be distinguished from synthetic products that merely track price. Following the stall of the CLARITY Act, the SEC is pursuing a regulatory framework for on-chain financial products. The regulator has issued guidance to distinguish securities from other digital assets and is exploring temporary exemptions for blockchain-based trading venues, provided they meet strict compliance and investor protection standards.