Former New York Governor Cuomo Says Tokenized Stocks Will Bring 'Radical Change' to Markets

Former New York Governor Andrew Cuomo said on October 10 that tokenized stocks would bring "radical change" to financial markets.

In an interview with The Wall Street Journal published that day, Cuomo said the tokenization of U.S. stocks could become a turning point for the market. If U.S. securities could trade globally 24 hours a day, seven days a week, it would amount to a major shift. He added that such a move could bring billions of dollars into the U.S. economy.

Cuomo was appointed co-chair of OKXICE in June. OKXICE is a joint venture equally owned by Intercontinental Exchange, the parent company of the New York Stock Exchange, and global cryptocurrency exchange OKX. He said OKXICE recently notified the U.S. Securities and Exchange Commission of its intention to operate a tokenized stock trading platform using the agency's "innovation exemption" framework.

Cuomo said it would be natural for companies to resist the tokenization of their own shares. Tokenization could make some functions of the existing market unnecessary, he said, and companies would likely respond with questions and caution.

He also expressed concern about regulatory uncertainty. Cuomo said administrative actions by the SEC and the Commodity Futures Trading Commission were filling the gap left after the Clarity Act failed to advance in the Senate last month. But administrative action alone makes it difficult for companies to establish long-term business plans, he said.