CMC News

Traditional Finance Group Opposes Tokenized #Stock Relief Requests

The Securities Industry and Financial Markets Association (SIFMA) has urged the #SEC to reject exemptive relief requests for #tokenized equity offerings.

SIFMA argues crypto firms seeking no-action letters would circumvent established securities regulations that protect investors.

The #trade group represents traditional securities issuers and finance firms concerned about regulatory precedent.

Commissioner Hester Peirce previously indicated the SEC was considering exemptive orders for blockchain-based securities platforms.

Paradigm's Alexander Grieve suggests SIFMA members want to protect their market position against tokenization competition.

Traditional exchanges fear increased competition as tokenized securities could enable more platforms to offer stock trading.

Consensys lawyer Bill Hughes acknowledges SIFMA's procedural arguments have merit regarding substantive rule changes.

#Coinbase and Kraken continue pursuing SEC approval for tokenized securities trading despite industry pushback.