IBM, Oracle, and Intel Object to OKX-ICE Tokenized Stocks

Technology giants IBM, Oracle, Intel and quantum computing firm IonQ have joined the opposition against a proposed tokenized stock platform from OKX and the Intercontinental Exchange, according to CryptoNews. The addition of the four companies brings the reported total of objecting issuers to 26 under the U.S. Securities and Exchange Commission's innovation exemption.

The framework, introduced by the SEC on Sept. 17, allows qualifying Tokenized Securities Venues to trade blockchain-based shares through permissioned automated market makers. The temporary rules require platforms to notify companies before offering shares tokenized by an unaffiliated third party, giving issuers 30 calendar days to object in writing.

Growing Opposition From Major Issuers

The latest objections build on an earlier October 23 disclosure that identified 22 objecting issuers, including Microsoft, Alphabet, Goldman Sachs, Wells Fargo, Qualcomm, Cisco Systems, Broadcom and CoreWeave. According to reporting by journalist Eleanor Terrett, the inclusion of IBM, Oracle, Intel and IonQ expands the dispute beyond early technology and financial services objectors.

The timely objections prevent the OKX-ICE venture from offering the affected companies' third-party tokenized shares under the exemption. However, the filings do not institute a broad ban on tokenization or restrict issuers from developing proprietary blockchain-based securities.

Regulatory Scrutiny Over Opt-Out Rules

The rising count of objectors has heightened debate over the SEC's decision to implement an opt-out mechanism rather than requiring affirmative issuer consent. In an October 19 comment letter, the Securities Industry and Financial Markets Association urged regulators to replace the opt-out process with mandatory affirmative approval and extend the objection period from 30 to 90 days.

OKX-ICE, a joint venture between cryptocurrency exchange OKX and New York Stock Exchange owner Intercontinental Exchange, initially identified 63 prospective securities for its permissioned X Layer blockchain venue. The platform must meet all technical requirements and disclose issuer objections publicly before trading can begin.

Key facts

• IBM, Oracle, Intel and IonQ joined objections against the OKX-ICE tokenized stock venture.
• The reported total of objecting issuers climbed from 22 to 26.
• The SEC innovation exemption gives companies 30 calendar days to object in writing to unaffiliated tokenization.
• SIFMA previously urged regulators to replace the opt-out rule with affirmative issuer consent and a 90-day window.