This allows publicly traded companies to influence whether independent third parties can tokenize and trade their shares, but it also encourages a cautious approach.
International law firm Latham & Watkins has alerted issuers that remaining silent essentially acts as a final decision: the SEC’s directive does not offer a way to contest after the 30-day period or retract a previous non-objection once trading has commenced.
Therefore, when a legal or investor relations team is informed about a new market framework they may not be well-versed in, opting to say no while gathering information can be a prudent decision.
“Many companies were unaware that a third party had tokenized their shares until the OKXICE notice was published,” said Dave Hendricks, CEO and founder of the tokenization company Vertalo, in conversation with CoinDesk.
“Once they become aware, a flurry of questions arises: who actually owns the shares behind the token, how do dividends and voting rights reach those owners, and what visibility does the transfer agent have?” he continued.
If these inquiries remain unresolved within the 30-day time frame, he believes it’s logical to raise objections.
Olivia Vande Woude, who leads tokenization at Ava Labs, also advised caution in interpreting the expanding list as a judgment on OKXICE.
“This is the first platform to issue notices under the SEC’s Innovation Exemption, so it’s the first to seek clarity on these matters,” she explained.