The World Federation of Exchanges (WFE), which represents leading global stock exchanges and clearing houses, has urged regulators to tighten oversight of tokenized equities, warning that the blockchain-based products could mislead investors and undermine market integrity.
In a letter sent last Friday to the SEC’s Crypto Task Force, the European Securities and Markets Authority (ESMA), and the International Organization of Securities Commissions' (IOSCO) Fintech Task Force, the WFE said tokenized equities are being marketed in ways that resemble traditional shares but lack shareholder rights or trading safeguards, according to Reuters.
