Regulators Push Back on Tokenized Stocks: Calls for Stronger Oversight

Global financial regulators are voicing their concerns over the lack of investor protections in newly emerging digital asset class – tokenized stocks. Leading organizations, including the European Securities and Markets Authority (ESMA), International Organization of Securities Commissions (IOSCO), and the World Federation of Exchanges (WFE), have joined forces to push for stricter regulations around these assets. The letter sent to the US SEC’s Crypto Task Force highlights concerns over tokenized stocks not accurately representing traditional equities, exposing investors to significant risks. ]