Global stock exchanges call for stricter rules on tokenized stocks
The World Federation of Exchanges (WFE)—the group behind major stock markets—wants stricter oversight on tokenized stocks.
These are blockchain-based tokens that act like shares but don't actually give you shareholder rights.
Platforms like Coinbase and Robinhood are quickly rolling out these products.
WFE warns of potential pitfalls
Tokenized stocks might look just like regular shares, but the WFE warns they lack the legal protections real stocks have.
That could leave investors confused or exposed to losses, and companies could take a reputational hit if their shares are copied as tokens without proper rules in place.
Regulation lags behind in the tokenized equity space
While tokenized equities offer perks like lower costs and round-the-clock trading, regulations haven't kept up with their growth.
The WFE is urging global regulators—including the US SEC—to step in, clarify how these assets should be handled, and protect both investors and companies as this trend takes off.