The Securities Industry and Financial Markets Association (SIFMA) is urging the SEC to reject requests from crypto firms seeking relief to offer tokenized stocks, expressing significant concerns over granting no-action or exemptive relief. Such exemptions could allow companies to provide securities outside the established regulatory framework, potentially undermining investor protections. SIFMA emphasizes that changes to market regulations should go through a formal process rather than immediate relief measures. SEC Commissioner Hester Peirce is considering an exemptive order for blockchain-based securities, identifying the need for regulation that aligns with new technologies. However, industry players note resistance from traditional finance, which aims to protect its market position and influence as tokenized trading platforms emerge. Companies like Coinbase and Kraken are keen on launching tokenized stocks but face regulatory challenges in the U.S. The conversation around the intersection of crypto and traditional finance continues to evolve, as players navigate complex policy questions.

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