The head of the exchange regulator warned that trading in tokenized shares could violate the securities law
Tokenized stocks selling to US investors are likely to face regulators. This opinion was expressed by the head of the US Securities and Exchange Commission (SEC) Gary Gensler at a meeting of the Committee on Legislation on Derivatives and Futures of the American Bar Association.
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The head of the exchange regulator emphasized that whoever acts as a service provider, all traders must still operate within the framework of American law. Thus, Gensler officially confirmed the position of the SEC, according to which the regulator will, if necessary, fight the decentralized finance (DeFi) market.
“Platforms, whether in a decentralized or centralized financial space, are subject to securities laws and must operate within our securities regime,” he said.
The SEC’s warnings also apply to securities-backed stablecoins or any other virtual product that provides synthetic access to the underlying securities.
We will remind, earlier it became known that the Binance cryptocurrency exchange will refuse to support tokenized shares on the binance.com platform. It is no longer possible to buy tokens, but they can be sold until October 14, 2021. Thus, one of the few large providers of tokenized shares is the FTX crypto exchange.
The fact that tokenized shares will attract the attention of regulators to the DeFi market was previously said by experts from the management company Arrington XRP Capital. Then analysts said that such tokens could become a real “Trojan horse” for the traditional economy.
Joseph Saluzzi, co-head of stock trading at Themis Trading, shares a similar opinion. According to him, the SEC will sooner or later take up DeFi, and trading in tokenized shares of large companies will only accelerate this process.
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