Particle.news
Download on the App Store
5 ARTICLES
·
3h ago

Global Exchanges Urge Crackdown on Tokenised Stocks

A WFE letter asks U.S. and EU watchdogs to treat stock tokens as securities with clear rules on ownership and marketing.

A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
Global stock exchanges call on regulators to crack down on tokenised stocks
Image
Wfe flags market integrity threat from tokenised equities amid coinbase, robinhood plans

Overview

  • The World Federation of Exchanges sent its appeal on Friday to the SEC’s Crypto Task Force, ESMA and IOSCO, and the agencies have not commented.
  • The group warns tokenised equities mimic shares without conferring voting or dividend rights, posing investor-protection and market-integrity risks, with potential reputational fallout for listed companies.
  • It urges regulators to apply existing securities rules, clarify legal frameworks for ownership and custody, and stop promotions that present tokens as equivalent to stocks.
  • Market activity is building, with Robinhood launching tokenised equities for EU customers in June and Coinbase seeking SEC permission for a U.S. offering, according to Reuters.
  • Backers cite lower costs, faster settlement and 24/7 trading, yet the market remains small at roughly $360 million versus research projecting as much as $1.3 trillion if tokenisation scales.