Crypto Regulation Relief Sparks Concerns Among Stock Exchanges

The SEC's potential regulation relief for crypto companies selling tokenised stocks raises investor protection concerns. The World Federation of Exchanges warns that exemptions could jeopardize market integrity. The finance sector explores integrating blockchain, but calls for equal regulation between traditional and crypto platforms remain strong.

The U.S. Securities and Exchange Commission's potential move to offer crypto companies regulatory relief for selling 'tokenised' stocks has met with criticism from stock exchanges. Concerns have been raised about the possible risks to investors. Crypto enterprises plan on issuing tokens representing listed equities, sparking debates about regulatory oversight.

SEC Chair Paul Atkins highlighted the development of an 'innovation exemption' to support experimentation within the crypto industry. However, the World Federation of Exchanges (WFE) expressed its worries in a letter to the SEC, questioning the impact on market integrity and investor protection should such exemptions be granted.

The finance industry is exploring blockchain integration, seen as a potential efficiency booster for equity markets. Nevertheless, skepticism persists about the true benefits versus current systems. The call for consistent regulatory measures echoes among mainstream finance leaders, emphasizing a level playing field for both traditional and crypto entities.

(With inputs from agencies.)