The Securities Industry and Financial Markets Association (SIFMA) has voiced strong opposition to granting exemptive relief to crypto platforms seeking to trade tokenized equities.
Risks of Exemptive Relief
SIFMA argues that giving immediate relief to crypto firms undermines the structured environment provided by Regulation NMS, Know-Your-Customer (KYC), Anti-Money Laundering (AML), and fair market practices. They believe exemptive relief could result in fragmented markets, reduced price transparency, and increased systemic risks.
SIFMA's Call for Public Rulemaking
Rather than making regulatory exceptions, SIFMA is advocating for a full notice-and-comment rulemaking process. This would allow regulators, industry players, and the public to weigh in on the proper integration of tokenized equities into the broader U.S. financial system.
Conclusion by SIFMA
In their letter to the SEC, SIFMA emphasizes that any structural changes should undergo the proper notice and comment processes rather than immediate no-action relief.
According to SIFMA, appropriate regulatory measures are essential to ensure investor protection and market stability while introducing new financial instruments.
