Overview

• The World Federation of Exchanges sent a letter Friday to the SEC Crypto Task Force, ESMA, and IOSCO urging tighter oversight of tokenized equities.
• The group says the tokens mimic listed shares without conferring shareholder rights, posing investor-protection and market-integrity risks.
• Its recommendations include applying existing securities rules, clarifying ownership and custody frameworks, and curbing marketing that portrays tokens as equivalent to stocks.
• Platforms are pushing ahead, with Robinhood launching tokenized equities for EU customers in June and Coinbase seeking SEC permission to offer similar products.
• Despite growth narratives, on-chain data pegs the sector near $360 million today while some research touts trillion-dollar potential, and regulators have not issued a coordinated response.