SIFMA proposes framework requiring issuer opt-ins, 90-day objection windows, and explicit exit rights for tokenized stock holders.
Regulation & Gov ·
The Securities Industry and Financial Markets Association (SIFMA) submitted a comment letter to the SEC on October 19, 2026, requesting that third-party tokenized stocks trade on Tokenized Securities Venues only with affirmative issuer consent, rather than under a default permission model. The proposal also calls for extending the current objection window from 30 days to 90 days, with the period running from confirmed receipt by a designated contact, and asks the SEC to clarify exit procedures for token holders if an issuer later withdraws permission to trade.
SIFMA's concerns center on operational and notice-delivery risks under the existing framework. The association highlighted that notices directed to general corporate mailboxes may not reach staff able to evaluate them in time, and raised questions about handling failed email delivery, spam filtering, and restarted objection clocks. To address these gaps, SIFMA proposes a centralized public portal listing each venue's notice, launch dates, intended tokenized stocks, and issuer responses, allowing companies to designate official contacts and record consent or objections by ticker or company name.
The requests remain open to SEC interpretation. SIFMA's letter, filed after the Innovation Exemption took effect and as venues prepare to launch within 30 days, does not announce any SEC decision but indicates the association would support additional time before trading begins if needed for the regulator to address these questions. The specifics of redemption rights, token transfer restrictions, and custody arrangements that venues must disclose to issuers also await SEC guidance, as outlined in SIFMA's full comment letter.