The Securities Industry and Financial Markets Association (SIFMA), which represents traditional banks, brokers, and securities issuers, has asked the US Securities and Exchange Commission (SEC) to decline requests from crypto firms looking to issue tokenized stocks under relaxed rules.
In a letter sent on June 30 to the SEC’s Crypto Task Force, SIFMA voiced concerns about companies seeking quick no-action letters or exemptions to offer blockchain-based shares.
SIFMA argued that these requests, if approved, would let firms sell stocks “outside of the regulatory structure” that provides important protections for investors.
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The group stressed that an important shift in how stocks are issued and traded should go through the normal rule-making process, which includes public comments.
The letter also pointed out that traditional firms already make an effort to meet disclosure, custody, and governance standards. Allowing crypto firms to skip those steps would be unfair and could leave buyers at risk.
SIFMA added that granting exemptions to multiple platforms could create confusion and inconsistent oversight, as each platform might operate under its own unique terms.
This pushback follows comments from SEC Commissioner Hester Peirce, who leads the agency’s digital assets group. In May, she said the SEC is “considering a potential exemptive order” to make it easier for blockchain systems to issue, trade, and settle stocks.
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