๐๏ธ Wall Street Pushes SEC on Tokenized Securities Rules ๐๏ธ
Major Wall Street groups are urging the SEC โ๏ธ to keep tokenized securities regulated under existing federal securities laws ๐ โ not under a separate or lighter framework ๐๐.
Representatives from SIFMA, law firm Cahill Gordon & Reindel โ๏ธ, along with Citadel ๐ฆ and JPMorgan ๐๏ธ, met with the SECโs Crypto Task Force ๐งโ๐ผ๐ to make their case. Their message was clear: tokenization should not mean deregulation โ๐.
๐ According to an SEC memo, the firms warned that allowing blockchain-based versions of stocks or other securities โ๏ธ๐ to trade under lighter standards could weaken long-standing investor protections ๐ก๏ธ and market-structure rules โ๏ธ. They encouraged the SEC to rely on formal rulemaking ๐๏ธ rather than broad exemptions or informal staff guidance โ ๏ธ.
๐ง Participants emphasized that tokenization changes the technical plumbing, not the economic reality of securities ๐ง๐. Whether securities are:
โข issued natively onchain โ๏ธ
โข held via custodial or entitlement structures ๐ฆ
โข or offered as โwrappedโ tokens ๐
โthey are economically equivalent to traditional securities and should follow the same regulatory obligations โ๏ธโ .
๐ DeFi was only briefly discussed, mainly around how exchange, broker-dealer, and market-access rules might apply if tokenized securities trade through decentralized or hybrid systems ๐คโ๏ธ. Broader DeFi activities like lending and governance were not a key focus ๐ฏโ.
๐ The meeting highlights growing alignment between regulators and major financial institutions ๐ค๐ฆ: while tokenization may modernize market infrastructure ๐โ๏ธ, it does not justify a separate regulatory regime for securities ๐โ.
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