Hester Peirce's words are quite straightforward—exemptions are only for genuine on-chain equity; synthetic stocks have no chance to sneak in.

SEC Commissioner Hester Peirce is cautious about the upcoming "Innovation Exemption," stating that the exemption applies only to on-chain versions of the same underlying equity securities that are already traded on the public secondary market, and that the scope should be very limited. Her remarks come from a Bloomberg report discussing the conditional exemption framework and exclude synthetic stock-style tokens. Despite rising interest in tokenized stocks, they still amount to only about $148 million in on-chain assets.