SEC Delays Plan to Permit Trading in Tokenized Stocks
Summary
- The U.S. SEC said it would delay plans to permit trading in tokenized stocks.
- Market participants said the decision could slow the expansion of the tokenized securities market in the U.S.
- Even so, Wall Street and the crypto industry continue to see strong long-term growth potential in the tokenized asset market.
Forecast Trend Report by Period
The U.S. Securities and Exchange Commission has decided to delay plans to permit trading in tokenized stocks, with regulatory uncertainty and investor-protection concerns seen as key factors behind the move.
Bloomberg reported on May 22 that the SEC opted to postpone the initiative after weighing market concerns and opposition.
Tokenized stocks are blockchain-based digital tokens issued and traded to represent actual shares. The industry has touted them as a way to improve trading efficiency and broaden access, but they have also raised concerns about investor protection and market stability.
Within the regulator, officials are reviewing possible conflicts with the existing securities framework, along with liquidity management and the protection of investor rights. Some market participants have also warned that allowing trading before rules are in place could trigger market disruption.
The SEC's decision has sharpened focus on the possibility that expansion of the U.S. tokenized securities market could proceed more slowly than expected. Even so, Wall Street and the crypto industry continue to see strong long-term growth potential in the tokenized-asset market and are pressing ahead with related businesses.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
