Full Breakdown
Major Companies Object to Crypto Platform’s Plan to Tokenize Their Shares
By Drooid · · How we work
Corporate Objections to Tokenized Stock Offerings
Reuters reported that at least 22 publicly traded firms have formally objected to the token-stock plans of OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange. The latest batch of objections includes Microsoft, Alphabet, McDonald’s, Goldman Sachs, Caterpillar, Qualcomm and Western Digital, with additional objections from Intuit and Wells Fargo noted later in the week. Earlier objections came from CoreWeave, Verizon, Applied Optoelectronics, Broadcom, UnitedHealth Group and others. Companies exercise a 30-day objection right under the Securities and Exchange Commission (SEC)’s Innovation Exemption, which allows token-issuers to proceed if no objection is received.
Regulatory Framework and the 30-Day Notice Process
The SEC’s Innovation Exemption, issued after the stalled Clarity Act, permits tokenized-security venues to trade certain tokenized National Market System (NMS) stocks without registering as exchanges for five years, provided the tokens carry the same rights as the underlying shares. Erin Martin, a partner at Morgan Lewis and former senior SEC lawyer, explained that platforms must notify a company of its intent; if the company does not object within 30 days, the venue may list the tokens. Martin also warned that notices can be overlooked when sent to a firm’s main executive office, and that the exemption does not prevent other platforms from offering similar tokens abroad or under different legal structures.
Industry Rationale and Criticisms
Proponents argue that tokenization could enable 24/7 trading and broader access to U.S. equities. Critics counter that blockchain is not required for those features and view the effort as regulatory arbitrage aimed at new revenue streams.
Potential Impact and Outlook
Andrew Cuomo, former New York governor and co-chair of OKXICE, downplayed the objections, noting that many firms may prefer to “wait and see” given the “dramatic and revolutionary” nature of the change. The SEC’s temporary relief order allows tokenized venues to operate with permissioned automated market makers and liquidity pools, but the broader legislative environment remains uncertain, with future congressional action likely to shape the industry’s trajectory.
