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NAM to SEC: Require Opt-In Mechanism in Tokenization Initiative

By NAM NewsroomNovember 10, 2026

The Securities and Exchange Commission should revise its new stock tokenization initiative to include an opt-in mechanism for public companies, the NAM told the agency recently.

What’s going on: In late September, the SEC issued temporary, conditional “innovation” exemptions for trading tokenized stocks, which are digital tokens on a blockchain representing ownership in a publicly traded company.

  • Under the exemptions, cryptocurrency firms and other third parties can legally create these tokenized versions of a company’s shares and trade them on their own platforms.
  • However, the SEC did not provide companies with an opt-in mechanism to use upon receipt of a tokenization request; instead, it simply requires that companies opt out within 30 days of receipt.

Why it’s a problem: “[T]he NAM has significant concerns over the Commission’s determination that a [tokenized securities venue] may tokenize a public company’s stock without obtaining its affirmative consent,” the NAM said last week.

  • “The Order’s 30-day period for companies to object to tokenization requests is not sufficient, given the likelihood that an unsolicited emailed request by a cryptocurrency-affiliated TSV would get blocked by corporate spam filters.” A physical notice could also get lost in a corporate mailroom or not be delivered to senior management before the period is almost up.

What should be done: The SEC should modify the exemption order so that tokenization can proceed only after a corporate issuer provides affirmative consent in writing, the NAM continued.

  • The SEC should also clarify how corporate dividends will be transmitted through TSVs to investors and what recourse investors would have if they do not receive their dividends on time.
  • The SEC should also address how TSVs will process proxy voting information.
  • The agency should consider requiring TSVs to provide “more comprehensive public notices” that identify their backers and explain their procedures for the benefit of companies and investors.

The last word: “In light of the SEC’s plan to run a five-year tokenization program, it is essential to address these important concerns early on to ensure that companies and their investors are fully protected during this period,” said NAM Vice President of Domestic Policy Jake Kuhns and NAM Senior Director of Corporate Finance Policy Ted Allen.