The SEC proposed an innovation exemption for crypto firms to list and trade tokenized versions of U.S. stocks. The proposal would create a lighter regulatory path for blockchain-based representations of public company shares. Tokenized stock could potentially be traded without the underlying company’s direct consent or full traditional regulatory oversight, enabling around-the-clock trading on blockchain platforms. Critics raised concerns about third-party issuance, settlement risks, price manipulation, and investor protection. The plan would shift traditional equities toward crypto-like market dynamics. The initiative was later delayed, with reporting confirming the delay. The concerns connect to fears of increased volatility and reduced safeguards in markets.
"The SEC plan would create a lighter regulatory path for blockchain-based representations of public company shares. Under the proposal, crypto firms could potentially trade tokenized stock without the underlying company's direct consent or full traditional regulatory oversight, enabling around-the-clock trading on blockchain platforms. Critics of the proposal raised concerns about third-party issuance, settlement risks, price manipulation, and investor protection. The plan would push traditional equities closer to the dynamics of the crypto market."
"Burry tied that vision directly to recent news that the SEC, under the Trump administration, was developing a broad innovation exemption allowing crypto firms to list tokenized versions of U.S. stocks. We may be headed full-on to a Snow Crash cyber-punk future with no long-term personal relationships and digital value embedded in all of us directly correlated to the value provided to a society that increasingly devalues humanity, Burry wrote."
"He added a follow-up in the comments section: Regulators have one job. Do not open scary doors. Bloomberg reported on May 18 that the SEC plan would create a lighter regulatory path for blockchain-based representations of public company shares. Under the proposal, crypto firms could potentially trade tokenized stock without the underlying company's direct consent or full traditional regulatory oversight, enabling around-the-clock trading on blockchain platforms."
Read at news.bitcoin.com
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