The debate over the regulatory treatment of tokenized securities is becoming increasingly intense. According to reports from NS3.AI, leading financial institutions on Wall Street have called on the U.S. Securities and Exchange Commission (SEC) to apply their existing regulations consistently to blockchain-based financial instruments, rather than granting separate exemptions.
Industry Leaders Reject Special Regulations for Blockchain Platforms
Senior representatives of major financial institutions and key industry associations have strongly opposed exemptions for decentralized trading platforms. Their argument is based on the belief that tokenized securities must meet the same compliance and oversight standards as traditional financial products. This demand aims to create a consistent regulatory framework that ensures market integrity and investor protection.
DeFi and Traditional Securities Regulation in Conflict
A central point of the debate is the growing significance of decentralized finance (DeFi) within the context of existing regulatory frameworks. The discussion highlights the challenge of classifying innovative blockchain technologies under the traditional securities regulations. It is not only about applying existing rules but also about clarifying how transparent and decentralized systems can be made compatible with centralized oversight mechanisms. Wall Street’s position suggests that regulatory harmonization for tokenized securities is necessary to ensure both innovation and consumer protection.
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Tokenized securities: Wall Street calls for clearer SEC regulation
The debate over the regulatory treatment of tokenized securities is becoming increasingly intense. According to reports from NS3.AI, leading financial institutions on Wall Street have called on the U.S. Securities and Exchange Commission (SEC) to apply their existing regulations consistently to blockchain-based financial instruments, rather than granting separate exemptions.
Industry Leaders Reject Special Regulations for Blockchain Platforms
Senior representatives of major financial institutions and key industry associations have strongly opposed exemptions for decentralized trading platforms. Their argument is based on the belief that tokenized securities must meet the same compliance and oversight standards as traditional financial products. This demand aims to create a consistent regulatory framework that ensures market integrity and investor protection.
DeFi and Traditional Securities Regulation in Conflict
A central point of the debate is the growing significance of decentralized finance (DeFi) within the context of existing regulatory frameworks. The discussion highlights the challenge of classifying innovative blockchain technologies under the traditional securities regulations. It is not only about applying existing rules but also about clarifying how transparent and decentralized systems can be made compatible with centralized oversight mechanisms. Wall Street’s position suggests that regulatory harmonization for tokenized securities is necessary to ensure both innovation and consumer protection.