SEC Meeting Sparks Debate on Decentralization Regulation and Tokenized Securities

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As reported by CoinEdition, an SEC Investor Advisory Committee meeting highlighted growing tensions between traditional finance regulators and the cryptocurrency community over the regulation of decentralized systems and tokenized securities. SEC Commissioner Caroline A. Crenshaw raised concerns about wrapped securities, questioning whether blockchain-based assets justify reduced regulatory oversight. She emphasized the risks of changing established standards to accommodate tokenized equities, noting unclear ownership rights and potential threats to market integrity. The debate centered on whether tokenized products offer clear benefits to investors or create opportunities for regulatory arbitrage.

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