Over 91.9 percent of tokenized stocks are currently closed to U.S. investors. Issuers implement geographic restrictions that prevent U.S. persons from accessing on-chain equity products, directing fractional ownership and 24/7 trading access to traditional U.S. market assets to non-U.S. participants instead.
Tokenized stocks are classified as securities under SEC jurisdiction, driving the cautious approach. SEC Chairman Paul Atkins has emphasized investor protection and compliance with existing securities laws for digital assets. The CLARITY Act, which aims to define regulatory jurisdiction for digital assets as either securities or commodities, remains under discussion regarding its application to tokenized equity products.
For on-chain capital flows, the restriction means a significant segment of the tokenization market operates primarily through non-U.S. wallets and platforms. Capital seeking exposure to tokenized equities is diverted away from U.S. domiciled liquidity pools, reducing market depth for these products in the U.S. DeFi ecosystem.
