Regulators and Exchanges Push Back on Tokenized Stocks

Global financial authorities and industry associations are joining forces to curb the rise of tokenized stocks, citing concerns that these products lack essential investor protections. In a letter addressed to the US Securities and Exchange Commission’s (SEC) Crypto Task Force, organizations including the European Securities and Markets Authority (ESMA), the International Organization of Securities Commissions (IOSCO), and the World Federation of Exchanges (WFE) have raised concerns about the risks associated with these products, arguing they do not adequately represent traditional stock ownership.