SIFMA Opposes Easing Crypto Tokenized Stocks Regulations

The American Financial Industry Regulatory Authority (SIFMA) has urged the Securities and Exchange Commission (SEC) not to grant leniency to crypto companies aspiring to issue tokenized stocks. SIFMA argues that such exemptions could jeopardize investor protection and undermine the established financial system, emphasizing that changes should undergo public discussion rather than being quietly implemented through private requests. Previously, SEC Commissioner Esther Pirs acknowledged that current rules are not compatible with blockchain technology, and easing regulations might facilitate the issuance of tokenized securities. From a broader perspective, longstanding financial institutions seem hesitant to relinquish their dominance, as reflected in the sentiment that "the old gods of finance are reluctant to share power." The narrative also indicates a growing trend towards integrating blockchain with traditional markets, such as the increased popularity of S&P 500 on blockchain platforms.