WFE Calls for Enhanced Regulations on Tokenized Stocks

The World Federation of Exchanges (WFE) has voiced concerns about the lack of adequate investor protection and market risks associated with tokenized stocks, urging regulators to enforce stricter controls. This call came after a formal appeal sent by WFE to regulatory bodies such as the U.S. SEC’s Crypto Task Force, ESMA, and IOSCO’s Fintech Task Force on August 25th, 2025. The WFE highlights that tokenized stocks lack traditional securities’ rights and trading safeguards compared to their conventional counterparts.