EU Regulators Sound Alarm About Tokenized Stock Misunderstandings

Natasha Cazenave, executive director of the European Securities and Markets Authority (ESMA), has warned that many tokenized offerings in Europe resemble traditional stocks but lack crucial shareholder rights like voting power or dividend payouts. She emphasizes this discrepancy could lead investors to mistakenly perceive these tokens as actual equity, posing a significant risk of misunderstanding.