Overview

• The World Federation of Exchanges sent letters to the SEC’s Crypto Task Force, ESMA and IOSCO urging tighter oversight of tokenized equities.
• It called for applying securities rules, clarifying legal ownership and custody, and curbing marketing that presents tokens as equivalent to stocks.
• The group warned that the products often lack voting and dividend rights and could damage issuers’ reputations if they fail, echoing an SEC commissioner’s view that such assets must meet securities laws.
• An SEC memo shows Kraken met the agency’s Crypto Task Force to outline a tokenized trading system and seek guidance on a lawful U.S. framework after launching offshore tokenized U.S. stocks.
• Tokenized equity trading is rolling out to non‑U.S. users on platforms such as Robinhood in the EU and Kraken, Coinbase is seeking SEC permission, and the market stands near $360 million versus a $1.3 trillion scenario if 1% of equities move on‑chain.