Wall Street transfer agents lobby SEC, warning that third-party tokens pose risks to market integrity

Story summary

The Securities Transfer Association, an industry group for transfer agents, said company-authorized tokenization should receive preferential treatment under future rules. An industry group for transfer agents is urging the SEC to favor issuer-sponsored tokenized shares over third-party stock tokens as it writes rules for moving U.S. equities onto blockchains. The group argues that only issuer-authorized tokens recorded in official shareholder registers should qualify as true tokenized stock, warning that synthetic and other third-party models can blur investor rights and add platform and custody risks. Some, however, say that regulators should distinguish between issuer-backed, custodial and…

The Securities Transfer Association, an industry group for transfer agents, said company-authorized tokenization should receive preferential treatment under future rules.

An industry group for transfer agents is urging the SEC to favor issuer-sponsored tokenized shares over third-party stock tokens as it writes rules for moving U.S. equities onto blockchains.
The group argues that only issuer-authorized tokens recorded in official shareholder registers should qualify as true tokenized stock, warning that synthetic and other third-party models can blur investor rights and add platform and custody risks.
Some, however, say that regulators should distinguish between issuer-backed, custodial and synthetic structures, as Wall Street and crypto firms race to build a multitrillion-dollar tokenized securities market.

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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months

CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.

Why it matters :

CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.

Wikipedia blackout could hurt how AI engines like ChatGPT understand crypto

U.S., UK move to align rules for tokenized finance across world's largest financial markets

Trump's crypto riches loom over Clarity Act talks to ban conflicts for U.S. officials

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