According to BlockBeats, Jake Chervinsky, the chief legal officer of Variant Fund, expressed on social media that the debate over tokens versus stocks is just beginning. Many crypto projects emerged before Gary Gensler was appointed as the head of the SEC, when strict regulatory pressures forced developers to focus on the value of stocks rather than tokens. As the political landscape evolves, new opportunities arise that require significant time and experimentation to determine how tokens and stocks can effectively collaborate.
Chervinsky emphasized the importance of clarity for token holders, who need to understand what they have, control, and cannot control. The design space for capturing token value is vast, significantly exceeding traditional capital. He considers it unlikely that a standard token model, similar to stocks, will emerge in the near future. Tokens must have value on-chain, while stocks must have value off-chain. The primary innovation that tokens enable is self-custody of digital assets, allowing holders to directly own and control the infrastructure on the network without relying on off-chain intermediaries.
Off-chain value differs, as token holders cannot directly own or control off-chain income or assets. In most cases, these values should belong to stocks rather than tokens. However, other models may also be viable. Some projects may choose a single asset model without stocks, while others may view their tokens as tokenized securities, adhering to new rules that the SEC may set for this market.
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