Investment bank TD Cowen anticipates minimal near-term adoption of tokenized stocks by both domestic retail and institutional investors, despite the US Securities and Exchange Commission (SEC) last week introducing new rules that create a five-year framework for trading tokenized securities outside traditional markets. TD Cowen Vice President Reid Noch noted in a paper on Friday that US investors already have efficient access to underlying shares, and tokenized venues must offer compelling benefits to offset limited liquidity and additional operational complexity. The SEC's new "Innovation Exemption" allows trading through automated market makers (AMMs) but imposes tight limits, including requiring third-party tokenizers to notify companies and capping trading volume. TD Cowen's conversations with issuers revealed minimal interest in tokenizing stocks outside crypto-adjacent companies, w