Wall Street giants push back on exemptions for tokenized securities in SEC meeting

Executives and industry groups, including SIFMA, Citadel LLC, and JPMorgan Chase & Co., met with the SEC's Crypto Task Force to advocate for applying traditional securities regulations to digital assets. They argued that tokenized securities, regardless of their blockchain issuance, are economic equivalents of traditional securities and should not trade under different rules, warning against regulatory shortcuts that could undermine investor protection and market structure. The firms supported formal rulemaking over broad exemptive relief, emphasizing that tokenization changes market plumbing but not the underlying economic reality. While decentralized finance (DeFi) was briefly mentioned regarding trading rules for tokenized securities, the overall consensus reflected a convergence between regulators and major financial institutions: tokenization should modernize markets within existing regulatory guardrails.

(Source：CoinDesk)