SEC Delays Crypto Stock Tokens Amid Wall Street Pushback
BeInCrypto
The SEC has postponed a proposed exemption allowing tokenized versions of U.S. stocks due to concerns over market fragmentation and investor protections.Summary
The U.S. Securities and Exchange Commission (SEC) has delayed a draft framework intended to allow crypto firms to offer tokenized versions of U.S. stocks. The initiative, which sought to enable 24/7 trading and fractional ownership, faced significant pushback from Wall Street and traditional exchange officials. Critics argued that parallel crypto markets could cause liquidity fragmentation and undermine price discovery, while also expressing concerns regarding investor rights for tokens issued without corporate consent. Despite the delay, the SEC continues to review the proposal, reflecting a cautious approach toward balancing financial innovation with the stability of established equity markets.
(Source：BeInCrypto)