The Securities Industry and Financial Markets Association (SIFMA) has urged the SEC to dismiss requests from crypto firms seeking no-action or exemptive relief to offer tokenized stocks. SIFMA warns that granting such relief could allow crypto companies to market securities without adhering to established federal laws, compromising critical investor protections. They emphasize the need for a more thorough regulatory review rather than rapid approvals. This appeal follows SEC Commissioner Hester Peirce’s consideration of exemptive orders for tokenization efforts. She notes companies might avoid issuing tokenized securities due to high registration costs. SIFMA's stance reflects traditional finance's reluctance to share power with emerging blockchain technologies, as these innovations may disrupt established trading platforms. Both Coinbase and Kraken have sought to introduce tokenized securities in the U.S., highlighting the growing interest in this sector, despite regulatory uncertainties.

Source đź”—