Wall Street transfer agents lobby SEC, warning that third-party tokens pose risks to market integrity
The Securities Transfer Association, an industry group for transfer agents, said company-authorized tokenization should receive preferential treatment under future rules.
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Summary
- 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.
