A group representing major stock exchanges has urged the SEC to abandon its plan to grant an “innovation exemption” to brokers and crypto firms seeking to offer tokenized stocks.
The US Securities and Exchange Commission shouldn’t grant broad regulatory relief to crypto companies launching tokenized stock offerings, as it risks the market and investors, argues a stock exchange advocacy group.
The World Federation of Exchanges (WFE) said in a letter to the SEC on Friday that it was “alarmed at the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenized US stocks.”
“These products are marketed as stock tokens or the equivalent to stocks when they are not,” the group said. “This development poses multiple and interconnected risks.”
