SIFMA Urges SEC to Reject Crypto Firms’ Tokenized Equity Proposals

The Securities Industry and Financial Markets Association (SIFMA) has formally requested the SEC to deny crypto companies' petitions for exemptive relief to offer tokenized equities. The trade group argues that such approvals would circumvent established regulatory frameworks, potentially eroding market transparency and investor protections.

Crypto firms are seeking no-action letters or exemptions to list tokenized stocks—a move that WOULD allow them to operate without immediate regulatory consequences. SIFMA's letter to the SEC's Crypto Task Force emphasizes that these matters demand comprehensive public review rather than expedited approvals through backchannel requests.

The debate coincides with SIFMA's scrutiny of IEX's proposed options exchange, where the association is pushing regulators to evaluate the platform's compliance with fairness and transparency requirements. Market participants await the SEC's response as the tension between innovation and regulation intensifies.