According to CoinEdition, the World Federation of Exchanges (WFE) has urged the U.S. Securities and Exchange Commission (SEC) to reconsider its plan to grant regulatory exemptions for tokenized stock offerings. In a letter dated November 21, the WFE warned that allowing unregistered crypto platforms to issue digital versions of U.S. equities could expose investors to significant risks, as these tokenized assets lack voting rights, bankruptcy protections, and traditional regulatory safeguards. The group, which includes members like Nasdaq and Cboe, argued that such exemptions could distort competition and weaken disclosure rules. SEC Chair Paul Atkins, a former crypto lobbyist, has supported the idea of an innovation exemption to boost U.S. crypto innovation, but the WFE called for narrow, time-limited relief with strict oversight.
WFE Opposes SEC's 'Innovation Exemptions' for Tokenized Stocks
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