A trade group in the industry urges the US Securities regulator to reject a wave of relief requests from crypto companies seeking to offer tokenized stocks.
The Securities Industry and Financial Markets Association (SIFMA), consisting of security and financial companies, said in a Letter On Monday it had “meaningful concern” about reports of crypto companies who submitted no action or exemptive relief to allow them to offer Tokenized equality or security.
No relief does it mean that the SEC does not recommend taking action on implementing a firm in the products it launches. The exemptive relief provides the SEC to exclude certain products from security laws to test them.
In a letter to the Crypto Task Force of the Securities and Exchange Commission, Sifma imported that if such accommodations were provided, then crypto companies could offer public security “outside of the regulatory structure established by federal security laws and which many critical investor protection flows.”
“The SEC should deny such requests to make significant changes to the regulatory structure for security markets under the laws of federal security through immediate action or exemptive relief in exchange for a greater process of notice and comment,” Sifma said.
“These policy questions are only very important to meet with immediate action or exemptive requests, and requests should be rejected.”
The SEC is considered to be changing the rule in securities
Sifma’s letter arrives after SEC Commissioner and head of Crypto Task Force Hester Peirce said in May that the regulator is “considered a potential exemptive order” for companies using blockchain to “issue, trade, and improve security.”
He said companies seeking to create platforms for tokenized securities may register with the SEC, which may be considered by many who are too expensive and may mean companies not to issue tokenized securities due to limited platforms they can exchange.
“External relief can help solve this chicken-and-Egg problem,” Peirce said.
He added that companies should “do not have to comply with Inapt regulations, which, in many cases, have been developed properly before the technologies tested exist.”
Tradfi does not “share power just -just”
Alexander Grieve, the vice president of government activities at the venture firm Paradigm, write In X on Wednesday that members of the SIFMA “want to protect their market position,” as tokenized securities can see many platforms that offer trade in what important stocks are.
She is added that for every subject of regulation and technology advances, “with incumbent opposition,” such as Banks are widely opposed Stablecoins and crypto derivatives with traditional finances in markets like this from the CME group.
“Former finance gods do not share power.”
Bill Hughes, a lawyer and the Global Regulatory lead in Blockchain Software Firm Consensys, Says In X that Sifma’s “main argument is a method and a reasonable one.”
“If we change major policies on how retail participants can access the public that the stock has exchanged the stock, then we must do that through notice and comment that reigns and not defulized exemptive relief or no action assurances.”
“Apparently, having some possession of one foot in the less -intermediated and controlled crypto world and the other of the heavily intermediated and controlled Capital market of Transa is a mess of regulatory policy,” Hughes said.
Related: The amount of crypto lies in bridging the gap between tradition and disruption
“Conundrums are increasing. We know a lot,” he added.
Coinbase and kraken eye tokenized stock
Crypto Exchanges Coinbase and Kraken looked to launch tokenized securities trading in the US with the approved Sec.
The head of legal Coinbase officer Paul Grewal, reportedly said that the exchange was Looking for approved for “Equal ones,” and it’s a “big priority” for the coinbase.
On Monday, Kraken began to offer tokenized stock Trading on its platform, which serves tokens that are fully -backing of shares with major US stocks such as Apple and Microsoft.
However, Kraken did not use the service for users in the US, Canada, EU, UK or Australia.
Magazine: Signs of danger for Bitcoin as retail let it go to institutions – Sky Wee
