WFE urges SEC to regulate crypto firms selling tokenized stocks

The World Federation of Exchanges (WFE) has sent a letter to the U.S. Securities and Exchange Commission (SEC) warning that a plan to allow crypto companies to sell tokenized stocks without regulation could harm investor interests. The move follows an earlier SEC announcement that it was considering exempting crypto firms from the requirement to register as broker-dealers to sell these products. The WFE argued that the SEC's proposed innovation exemption could create market risks and weaken investor protections. The federation stressed that exemptions should not be granted to companies attempting to bypass regulatory principles, adding that traditional stock exchanges and crypto platforms must compete fairly under the same rules.