Cryptoupdated 1h ago2 min read
IBM, Oracle, Intel, and IonQ Join Objections To OKX-ICE Tokenized US Shares
“It offers no reason for the objections, according to Reuters.”
“Former New York Governor Andrew Cuomo, co-chair of the tokenization venture, said it was a ‘very natural response’ for some companies to object, and he expected to see more names added to the list.”
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
26 issuers have filed objections to OKX-ICE tokenized stock plan IBM, Oracle, Intel, and IonQ are the latest four to join opposition
Opposition hits 26
OKXICE, the joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), faced a growing issuer backlash as IBM, Oracle, Intel, and IonQ joined objections to tokenizing US-listed shares, bringing the total number of corporate objections to 26. OKXICE had notified the US Securities and Exchange Commission (SEC) on October 4 about a plan that envisioned a venue for 24/7 trading denominated in stablecoins (USDC, USDG, and USDT), with tokenized US-listed shares trading on X Layer, the Ethereum layer-2 network operated by OKX.
The SEC framework at issue gave issuers a 30-day window to object to third-party tokenized shares, and the effect of an objection limited the restriction to the exchange that received the notice. Eleanor Terrett reported the latest additions, and the objections were framed as a challenge to OKXICE’s ability to list affected securities under the innovation-exemption process.
How the opt-out works
The SEC’s innovation-exemption approach allowed Tokenized Securities Venues to offer limited trading for tokenized National Market System (NMS) stocks, and it required venues to provide a notice to companies before offering tokenized versions of their shares. The SEC rules also gave issuers 30 calendar days to object in writing, and a timely objection prevented the notifying venue from listing the affected security under the exemption.
OKXICE’s plan centered on 24/7 blockchain-based trading of shares, and the proposal described tokenized shares as backed one-for-one by real shares held through a registered securities agent. Andrew Cuomo, co-chair of the OKXICE initiative, told reporters that “This is a world that runs 24/7,” and he questioned why U.S. stock markets should remain limited to traditional trading hours when investors operate globally.
SEC review and stakes
The SEC’s September 17 approval of a five-year time-limited “innovation exemption” did not mean the filings met the conditions, and the SEC said the listing does not mean the filings meet the conditions. The exemption order imposed conditions on exchanges, including that the exemption is a five-year time-limited measure and that entities supplying liquidity to automated market makers (AMMs) are also exempted from “dealer” regulation.
Better Markets submitted a comment letter to the SEC on October 22 criticizing the introduction of the framework through an exemption order under Section 36(a)(1) of the Securities Exchange Act of 1934 rather than through a formal rulemaking process under the US Administrative Procedure Act (APA). OKXICE’s effort also faced a parallel debate over whether issuer consent should be affirmative rather than opt-out, with industry groups urging regulators to replace the opt-out process with affirmative issuer consent as the SEC continued to review the framework.