Backpack Exchange's tokenized stocks are already trading above the volume caps set by the SEC's innovation exemption framework, meaning joining the regulatory sandbox would require halting its own market, according to Armani Ferrante. The SEC's proposed exemption limits trading volume on tokenized venues, creating a paradox for platforms that have already exceeded those thresholds before opting in. The situation highlights growing tension between the SEC's cautious approach to tokenized securities and the rapid growth of on-chain markets, particularly on Solana where Backpack has built significant trading activity in tokenized equities.