The Securities Industry and Financial Markets Association (SIFMA) has urged the SEC to reject requests from crypto companies seeking to offer tokenized stocks. The association expresses concern over ensuring investor protections.
Concerns Regarding Relief Requests
In a letter to the SEC, SIFMA stated it has ‘significant concerns’ regarding reports of crypto firms submitting no-action or exemption relief requests to offer tokenized equities. The association claims that granting such reliefs would allow crypto firms to offer securities publicly ‘outside of the regulatory structure established by federal securities laws.’
SEC's Consideration of Tokenized Securities Legislation
SIFMA's letter comes after SEC Commissioner and Crypto Task Force leader Hester Peirce indicated that the agency is ‘considering a potential exemptive order’ for firms using blockchain to issue, trade, and settle securities. In earlier remarks, she emphasized that companies looking to create tokenized securities platforms might need to register with the SEC.
Crypto Exchanges Exploring Tokenized Stocks Launch
Crypto exchanges Coinbase and Kraken are looking to launch tokenized securities trading in the US with SEC approval. Coinbase's chief legal officer has declared this initiative a crucial priority for the exchange, while Kraken recently started offering tokenized stocks.
The discussions surrounding SIFMA and the SEC highlight the importance of regulation in the rapidly evolving sphere of tokenized assets. The crypto industry continues to explore avenues to innovate while maintaining investor protections.
