Wall Street Urges SEC Reject Token Exemptions

Wall Street Urges SEC Reject Token Exemptions

In Summary

  • SIFMA urges SEC to reject crypto firms’ tokenized equity exemptions
  • Group calls for public debate, not closed-door no-action relief
  • Coinbase, Kraken plan tokenized stock trading if approved
  • SEC weighs new fast-track rules for crypto ETFs by October


Catenaa, Friday, July 04, 2025-A top U.S. financial industry group is pushing back against efforts by crypto firms to offer tokenized equities, urging the Securities and Exchange Commission (SEC) to reject requests for exemptive relief and instead adopt a transparent public process.

The Securities Industry and Financial Markets Association told the SEC’s Crypto Task Force it was concerned by reports that digital asset platforms, including Coinbase and Kraken, are seeking to bypass traditional regulatory scrutiny to offer blockchain-based stock trading.

If approved, crypto firms could offer tokenized shares of traditional stocks, placing them in direct competition with legacy brokerages.

Kraken has already said it plans to offer such services globally. SIFMA questioned how investor protections and regulatory oversight would be enforced for unregistered entities operating under exemptions.

The SEC formed its Crypto Task Force in January under a new administration and has since softened its stance on digital assets. Commissioner Hester Peirce leads the effort.

Separately, the agency is evaluating dozens of applications for crypto ETFs, including those tied to Solana, XRP and Dogecoin. A new framework under consideration would allow ETF issuers to bypass the usual exchange-led 19b-4 process, accelerating approvals ahead of a key October deadline.

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