Regulators Target $26B Tokenized Stock Market Over Investor Protection Gaps

Global financial watchdogs are sounding alarms over the rapidly growing tokenized stock sector, now valued at $26 billion. The European Securities and Markets Authority, International Organization of Securities Commissions, and World Federation of Exchanges have jointly pressed the SEC's crypto task force for stricter oversight, citing inadequate investor safeguards compared to traditional equity markets.

These blockchain-based assets replicate stock performance without offering equivalent legal protections. "We're well past the phase where regulators could ignore this market," observed one industry analyst, referencing the sector's transition from obscurity to regulatory scrutiny. The coalition specifically warned about misleading marketing practices and systemic risks in these less-regulated products.