The post Crypto firms must not ‘bypass’ regulations, exchanges warn SEC – Why? appeared on BitcoinEthereumNews.com.

Key Takeaways What is the main fear about tokenized stocks? They fear granting exemptions would allow crypto firms to bypass rules, resulting in investors getting stock exposure without crucial legal protections of direct ownership. Which major group is leading the opposition? The World Federation of Exchanges (WFE) includes exchanges like Nasdaq and Deutsche Börse. Global stock exchanges are strongly resisting the push by crypto firms to sell “tokenized” stocks to retail investors. Global stock exchanges vs. the SEC A coalition, including major U.S. players, formally warned the SEC that granting special regulatory exemptions to these crypto companies would harm everyday investors and compromise market integrity. In a letter this week, the exchanges opposed the SEC’s potential plan to grant exemptions allowing non-broker-dealer crypto platforms to sell tokens linked to listed equities. They argue this would let firms “bypass” decades-old rules, offering stock exposure without the crucial legal protections of direct ownership, despite crypto proponents arguing the move is necessary for innovation. For those unaware, the conflict is focused on the SEC’s proposed “innovation exemption,” which Chair Paul Atkins suggests would give crypto firms relief from existing securities laws to test new business models. World Federation of Exchanges stands in opposition However, the World Federation of Exchanges (WFE), including Nasdaq and Deutsche Börse, strongly opposes the relief. Remarking on the same, WFE CEO Nandini Sukumar urged the SEC, noting,  “The SEC should avoid granting exemptions to firms attempting to bypass regulatory principles that have safeguarded markets for decades.” The group argues the exemption risks market integrity and investor protection by allowing unregulated platforms to compete directly with established, compliant exchanges. The debate’s core involves tokenized equities, crypto tokens pegged to listed stocks. Crypto firms promote them for easier stock exposure, but the WFE is concerned they lack the fundamental investor protections…

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Filed under: News - @ November 28, 2025 2:24 am