SIFMA has asked the SEC to reject requests from crypto companies to offer tokenized equities
The post SIFMA has asked the SEC to reject requests from crypto companies to offer tokenized equities appeared on BitcoinEthereumNews.com. The Securities Industry and Financial Markets Association (SIFMA) has asked the SEC to reject requests from crypto companies to offer tokenized equities through specific exemptive relief. The trade association warns that such moves could undermine transparency and regulatory safeguards. According to reports, crypto companies want to offer tokenized stocks and have asked the SEC for no-action or exemptive relief to do so. No-action relief means that the SEC staff will not suggest that the company be punished if it sells those products. Therefore, SIMFA sent a letter to the SEC’s Crypto Task Force this week saying that its members have been reading with great concern these reports. “These policy questions are simply too important to be addressed purely through immediate no-action or exemptive requests, and such requests should be rejected,” SIFMA said. Instead of going through no-action or exemptive relief to launch those products, SIFMA said the agency should require a more transparent process through public comment and engagement from the broader industry. SIMFA asks for scrutiny of IEX’s options exchange proposal This comes after SIFMA voiced concerns about IEX’s plans to open a new options trading site. They asked regulators to carefully check if the plan meets market fairness and transparency standards. IEX proposed an options exchange that would introduce a 350-microsecond pause on trades. This stops very fast traders from taking advantage of small price differences. SIFMA, representing broker-dealers, investment banks, and asset managers, said the proposed setup could harm investors. According to the association, brokers must send orders to the exchange that display the best price. However, under IEX’s plan, those displayed prices might disappear before the trade is executed, potentially leaving customers with inferior deals. “It has been well established by the SEC and Federal Court that IEX innovations … help investors and do not harm…
The post SIFMA has asked the SEC to reject requests from crypto companies to offer tokenized equities appeared on BitcoinEthereumNews.com.
The Securities Industry and Financial Markets Association (SIFMA) has asked the SEC to reject requests from crypto companies to offer tokenized equities through specific exemptive relief. The trade association warns that such moves could undermine transparency and regulatory safeguards. According to reports, crypto companies want to offer tokenized stocks and have asked the SEC for no-action or exemptive relief to do so. No-action relief means that the SEC staff will not suggest that the company be punished if it sells those products. Therefore, SIMFA sent a letter to the SEC’s Crypto Task Force this week saying that its members have been reading with great concern these reports. “These policy questions are simply too important to be addressed purely through immediate no-action or exemptive requests, and such requests should be rejected,” SIFMA said. Instead of going through no-action or exemptive relief to launch those products, SIFMA said the agency should require a more transparent process through public comment and engagement from the broader industry. SIMFA asks for scrutiny of IEX’s options exchange proposal This comes after SIFMA voiced concerns about IEX’s plans to open a new options trading site. They asked regulators to carefully check if the plan meets market fairness and transparency standards. IEX proposed an options exchange that would introduce a 350-microsecond pause on trades. This stops very fast traders from taking advantage of small price differences. SIFMA, representing broker-dealers, investment banks, and asset managers, said the proposed setup could harm investors. According to the association, brokers must send orders to the exchange that display the best price. However, under IEX’s plan, those displayed prices might disappear before the trade is executed, potentially leaving customers with inferior deals. “It has been well established by the SEC and Federal Court that IEX innovations … help investors and do not harm…
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