Stock Exchanges Urge SEC to Curb Crypto Tokenized Stock Offerings
Global stock exchanges are sounding the alarm on tokenized equities. The World Federation of Exchanges, representing Nasdaq, Cboe, and other major players, has formally requested the SEC to halt special exemptions for crypto firms marketing synthetic stock products.
At issue are platforms offering crypto tokens pegged to traditional equities—products that mimic stocks without conferring actual ownership rights. WFE CEO Nandini Sukumar warns these offerings risk misleading investors and undermining decades-old market safeguards.
The SEC now faces mounting pressure as it considers creating a regulatory sandbox for testing tokenized securities. Market veterans argue such experiments could erode trust in traditional equity markets if not properly constrained.
