Finance Group Urges SEC Reject Tokenized Equities Exemptions
The Securities Industry and Financial Markets Association (SIFMA) has urged the SEC to reject requests from crypto companies for no-action or exemptive relief to offer tokenized stocks. SIFMA expressed significant concerns that granting such relief would allow crypto firms to bypass federal securities laws, undermining investor protections. The organization emphasized the need for a thorough notice and comment process for any regulatory changes rather than immediate relief. SEC Commissioner Hester Peirce indicated the SEC is considering an exemptive order for blockchain-based securities, acknowledging potential regulatory burdens on companies. SIFMA's stance reflects a desire to maintain traditional market structures against the rise of tokenized securities, with firms like Coinbase and Kraken seeking to enter this space. Kraken has begun offering tokenized stock trading, though not available in several major markets.
