SEC Must Not Let Crypto Companies 'Bypass' Rules, Stock Exchanges Say (reuters.com)
- Reference: 0180218057
- News link: https://slashdot.org/story/25/11/26/1930205/sec-must-not-let-crypto-companies-bypass-rules-stock-exchanges-say
- Source link: https://www.reuters.com/sustainability/boards-policy-regulation/sec-must-not-let-crypto-companies-bypass-rules-stock-exchanges-say-2025-11-26/
> Several crypto companies plan to sell crypto tokens linked to listed equities to retail investors who want to get exposure to stocks without owning them directly. But to sell the products in the U.S., crypto companies which are not registered as broker-dealers would need the SEC to give them a no-action letter or an exemption.
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> SEC Chair Paul Atkins has said the agency is working on crafting an "innovation exemption" from securities laws which would enable crypto players to experiment with new business models. The World Federation of Exchanges (WFE), a group whose members include the U.S. Nasdaq and Germany's Deutsche Boerse, said in a letter dated November 21 that an exemption could create market integrity risks and undermine investor protections. "The SEC should avoid granting exemptions to firms attempting to bypass regulatory principles that have safeguarded markets for decades," WFE CEO Nandini Sukumar told Reuters.
[1] https://www.reuters.com/sustainability/boards-policy-regulation/sec-must-not-let-crypto-companies-bypass-rules-stock-exchanges-say-2025-11-26/
When private companies think deregulation is bad.. (Score:3)
... you know the government is doing very stupid things. Stock exchanges are for-profit companies, which as a general rule would welcome more investment vehicles to drive up their own business. When they tell you to stop deregulating because it puts their long-term business at risk, you know the governmental body is headed by clowns.
Re: (Score:1)
The stock markets see crypto as something that makes them irrelevant if implemented properly.
There is absolutely no reason why all stocks couldn't be token based. There are technical solutions to ALL criticisms whether or not the politics or optics are aligned with this fact.
The stock exchanges make money from selling market data, listing fees, trading fees and selling hosting services to give people who use their markets an advantage if they are willing to pay for infrastructure in the same location to low
Re: (Score:2)
> There is absolutely no reason why all stocks couldn't be token based.
Conversely, there is absolutely no reason stocks should be token based.
Let them fail (Score:2)
I had to read the blurb several times, but if these companies don't want to play by the same rules and regulations that real markets do, let them. Let them sell whatever they want in whatever fashion they want, without protections.
Then, when [1]the daily occurrence of crypto theft [yahoo.com] occurs, they can be on the hook for making the "investors" whole again. Or not. Depending on what "exemptions" are given it's possible they may not owe anything, in which case the "investor" will have learned a valuable lesso
[1] https://www.yahoo.com/news/articles/fake-delivery-man-steals-11-073243046.html
YAFS (Yet Another Financial System) (Score:2)
Like I've [1]said before [slashdot.org], this is just yet another financial system being created to have a minority of people manage the majority of the wealth, to their own advantage. This is just a new competing system with less regulation created by the crypto bros to wrestle the current system away from the Wall St. bros.
[1] https://slashdot.org/comments.pl?sid=23517431&cid=64937203
They can't enforce anything anymore (Score:2)
All they can do is take someone to court.