Wu Said has learned that according to a draft recommendation submitted by the SEC Investor Advisory Committee (IAC) Market Structure Subcommittee, regulators should not provide a "comprehensive innovation exemption" for equity tokenization. Instead, regulatory adjustments should be advanced through limited exemptions or rule-by-rule reforms while maintaining core investor protection principles, including requirements for clear disclosure of investor rights, continued SEC and FINRA oversight of intermediaries, and ensuring trades comply with best execution principles. Relevant regulatory reforms should also be developed through a public comment process.