Wall Street transfer agents lobby SEC, warning that third-party tokens pose risks to market integrity
Wall Street transfer agents lobby the SEC, arguing issuer-authorized tokenized shares deserve preferential treatment over third-party tokens. The Securities Transfer Association warns synthetic and custodial models blur investor rights and add custody risks. As tokenization races toward a projected $5.5 trillion market by 2030, regulators must clarify which blockchain-based equity structures qualify as true securities to protect market integrity and investor protections.
Key takeaways
- 1Wall Street transfer agents urge SEC to favor issuer-authorized tokenized shares over third-party tokens in blockchain equity rules.
- 2Tokenized securities market projected to reach $5.5 trillion by 2030, with tokenized stocks growing to $2.6 trillion globally.
- 3Current $2 billion tokenized stock market mostly uses synthetic third-party models, unavailable to U.S. retail investors.
Why it matters
As tokenization reshapes capital markets, regulatory clarity on which blockchain equity structures qualify as true securities will determine market structure and investor access in India's growing crypto-friendly regulatory environment. This shapes whether Indian retail investors can participate in global tokenized equity markets.
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