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A major Wall Street group has come out strongly against the push to allow tokenized stock trading. The Securities Industry and Financial Markets Association (SIFMA) is urging the US Securities and Exchange Commission (SEC) to reject requests from cryptocurrency companies seeking special exemptions to offer tokenized equities.
In a recent letter, SIFMA expressed concerns about crypto firms requesting no-action or exemptive relief for tokenized stock trading. The organization argued that these companies should instead undergo standard regulatory processes rather than receiving individual exemptions.
SIFMA represents the interests of securities issuers and finance institutions in traditional markets. The group believes that blockchain technology-based securities would enable more platforms to offer trading on stocks, ultimately benefiting investors and the broader financial ecosystem. However, SIFMA is adamant that tokenized stock trading should not be allowed outside established regulatory structures.
The move by SIFMA marks a significant setback for cryptocurrency companies seeking to tokenize traditional equities. Coinbase’s chief legal officer has reportedly labeled this development as a “huge priority” for the exchange, while another leading crypto firm launched its tokenized stock trading platform earlier this week, excluding users from several major markets.
Despite the opposition from SIFMA, cryptocurrency companies continue to push forward with their plans. They argue that blockchain technology offers improved efficiency and accessibility compared to current systems.
Source: coincentral.com
