Global crypto exchanges push for trading in US stock-linked tokens…concerns grow over a regulatory vacuum

JH Kim

Summary

It reported that some global virtual asset exchanges are showing signs of restarting and expanding tokenized product trading that tracks US stocks.
It reported that major virtual asset exchanges worldwide are rushing plans to enable trading in crypto tokens that track US stock prices, drawing attention to the potential formation of a parallel market outside the regulatory reach of US financial authorities.
It reported that these tokens do not directly hold the underlying shares and only track price movements, making it highly likely they could trade outside the US securities regulatory framework, and that debates could re-emerge over investor protection and gaps in oversight.

On the 23rd (local time), the financial news account Walter Bloomberg reported that some global virtual asset (cryptocurrency) exchanges are showing signs of restarting and expanding trading in tokenized products that track US stocks.

Major virtual asset exchanges worldwide are moving quickly to allow customers to trade crypto tokens that track US stock prices.

This structure is drawing attention because it could create a "parallel market" outside the direct regulatory reach of US financial authorities.

In particular, Binance is reportedly reviewing plans to relist stock tokens that it halted in 2021. At the time, Binance suspended trading in tokens tracking US stocks such as Tesla and Coinbase, citing regulatory pressure.

Because these tokens are designed to track only price movements without directly holding the underlying shares, regulators are concerned they could be traded outside the US securities regulatory framework. The industry says such tokenized stocks could broaden global access to investing, while warning that debates could flare up again over investor protection and gaps in oversight.