SEC Token Framework Faces Pushback From Broadcom, Verizon, and Nasdaq
Broadcom, Verizon, and UnitedHealth are pushing back against tokenized stocks on the OKX-ICE venue. Nasdaq is mainly pointing to market data and the consolidated tape.
Key Takeaways
- Broadcom, Verizon, UnitedHealth, and five other companies are objecting to trading on the planned OKX-ICE venue for tokenized stocks.
- OKXICE wants to launch the venue under the five-year SEC Innovation Exemption, with 63 U.S. stocks, 24-hour trading, and settlement in stablecoins.
- Nasdaq does not want its own shares tokenized under this framework because it does not guarantee real-time best prices or reporting to the consolidated tape.
The new U.S. SEC approach to tokenized stocks is already facing pushback from major publicly traded companies. Broadcom, Verizon, and UnitedHealth are among the latest companies to object to trading on the planned OKX-ICE venue. Nasdaq has also said it does not want its own shares tokenized under this framework.
More Companies Say No
In a public filing from October 15 by OKXICE, the joint venture between crypto exchange OKX and Intercontinental Exchange, there are eight new objections. Along with Broadcom, Verizon, and UnitedHealth, they include AppLovin, Applied Digital, Rocket Lab, CoreWeave, and Applied Optoelectronics. In total, the update names nine objecting issuers, including Cerebras Systems, which had already formally said it did not want to participate.
The filing does not say why the companies are objecting or when they submitted their objections. That means it is not clear whether the concerns are mainly legal, operational, or strategic. Still, the list shows that resistance to tokenized stocks is broader than just a few big names.
How the Platform Is Supposed to Work
OKXICE told the SEC on October 5 that it plans to launch the venue, starting with shares of 63 U.S. companies. The platform would operate under the five-year SEC Innovation Exemption, which was issued on September 17. That exemption allows qualified platforms to trade tokenized U.S. stocks using automated market makers and liquidity pools.
Under the plan, tokenized stocks are blockchain-based representations of shares. Trading would run 24 hours a day through Uniswap v4 liquidity pools on OKX's XLayer blockchain, with settlement in stablecoins. The underlying shares would be held one-to-one through a registered broker-dealer, while token holders are supposed to get the same rights, including dividends and voting rights.
Why Nasdaq Is Opting Out
Nasdaq separately said it does not want its own shares tokenized under this framework. A spokesperson told the Wall Street Journal that the company does not want its shares traded on a venue that does not show the best prices in real time or report to the consolidated tape, the system that aggregates exchange data. That objection gets at a core market structure issue and may matter for European crypto readers, since tokenized stocks are being presented here as a bridge between traditional markets and blockchain trading.
The temporary nature of the SEC exemption also plays a role. TD Securities previously pointed out that the framework relies on temporary relief instead of permanent rules. According to the analysts, that could make parties less willing to invest in infrastructure, especially if a future commission can reverse the approach again.
The debate fits into a broader wave of experiments around tokenized securities. Wall Street Builds Its Own Crypto Rules also shows that major financial firms are developing their own frameworks and infrastructure while lawmakers lag behind.
