TechFlow, November 27 — According to Reuters, the World Federation of Exchanges (WFE) has written to the U.S. Securities and Exchange Commission (SEC), opposing its potential plan to grant regulatory exemptions for crypto firms selling "tokenized" stocks.
In a letter dated November 21, WFE warned that such exemptions could pose risks to investors and undermine market integrity. The organization's members include major exchanges such as Nasdaq and Deutsche Börse. WFE CEO Nandini Sukumar said: "The SEC should not grant exemptions to companies attempting to bypass decades-old regulatory principles designed to protect markets."
Currently, several crypto firms plan to sell crypto tokens linked to listed stocks to retail investors but require an SEC no-action letter or exemption to offer such products in the United States. SEC Chair Paul Atkins previously stated that the agency is developing an "innovation exemption" policy to allow crypto firms to experiment with new business models.
