Wall Street Giants Oppose Regulatory Exemptions for Tokenized Securities

Wall Street Institutions Call for Tighter Regulation of Tokenized Securities

Several major Wall Street firms, including SIFMA, Citadel, and JPMorgan, recently met with the SEC's crypto asset task force. They argued that tokenized securities should remain under existing federal securities laws, rejecting the idea of a separate regulatory framework.

Tokenization Changes Infrastructure, Not Substance

The institutions stressed that while tokenization alters how securities are traded, it doesn't change their fundamental nature. They warned that weaker regulations could harm investor protections and destabilize market structures.

Call for Formal SEC Legislation

The firms urged the SEC to adopt formal regulations rather than relying on temporary exemptions or staff guidance. Their stance shows that Wall Street prefers treating tokenized securities the same way as traditional ones.

• Tokenized securities should follow existing laws
• Looser rules may risk investor safety
• Wall Street pushes for clear SEC legislation