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SEC Must Not Let Crypto Companies 'Bypass' Rules, Stock Exchanges Say (reuters.com) 25

Posted by msmash from the will-you-do-something dept.
The Securities and Exchange Commission's possible plan to grant crypto companies relief from regulation to sell "tokenised" stocks risks harming investors, a group of stock exchanges said in a letter to the U.S. regulator this week. From a report: Several crypto companies plan to sell crypto tokens linked to listed equities to retail investors who want to get exposure to stocks without owning them directly. But to sell the products in the U.S., crypto companies which are not registered as broker-dealers would need the SEC to give them a no-action letter or an exemption.

SEC Chair Paul Atkins has said the agency is working on crafting an "innovation exemption" from securities laws which would enable crypto players to experiment with new business models. The World Federation of Exchanges (WFE), a group whose members include the U.S. Nasdaq and Germany's Deutsche Boerse, said in a letter dated November 21 that an exemption could create market integrity risks and undermine investor protections. "The SEC should avoid granting exemptions to firms attempting to bypass regulatory principles that have safeguarded markets for decades," WFE CEO Nandini Sukumar told Reuters.

SEC Must Not Let Crypto Companies 'Bypass' Rules, Stock Exchanges Say More | Reply

SEC Must Not Let Crypto Companies 'Bypass' Rules, Stock Exchanges Say

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  • All they can do is take someone to court.
    • It'll never happen anyway, the Grifter-in-Chief relies on dodgy crypto schemes so he'll make sure the SEC knows which way their decision should fall.

  • When private companies think deregulation is bad.. (Score:4, Informative)

    by AnOnyxMouseCoward ( 3693517 ) on Wednesday November 26, 2025 @03:22PM (#65819893)
    ... you know the government is doing very stupid things. Stock exchanges are for-profit companies, which as a general rule would welcome more investment vehicles to drive up their own business. When they tell you to stop deregulating because it puts their long-term business at risk, you know the governmental body is headed by clowns.

    • The stock markets see crypto as something that makes them irrelevant if implemented properly.

      There is absolutely no reason why all stocks couldn't be token based. There are technical solutions to ALL criticisms whether or not the politics or optics are aligned with this fact.

      The stock exchanges make money from selling market data, listing fees, trading fees and selling hosting services to give people who use their markets an advantage if they are willing to pay for infrastructure in the same location to low

  • I had to read the blurb several times, but if these companies don't want to play by the same rules and regulations that real markets do, let them. Let them sell whatever they want in whatever fashion they want, without protections.

    Then, when the daily occurrence of crypto theft [yahoo.com] occurs, they can be on the hook for making the "investors" whole again. Or not. Depending on what "exemptions" are given it's possible they may not owe anything, in which case the "investor" will have learned a valuable lesso

    • The problem is the knock-on effects when large numbers of idiots are allowed to be scammed. Idiots here means corporations and governments in addition to individuals.

      Stupid people, doing stupid things, which harm someone else, is why the concept of "law" was invented.

      Then there's the implied message that scamming people is OK as long as they're stupid. Not sure those kind of ideas lead to a good culture or civilization generally.

      • Surely the problem is one of who gets to do the scamming?

        • That's what some in power see as the problem. For a contemporary example, you can take the red hat movement. Scamming (and worse) has been greenlit as long as they get a cut.

          What you see from that is the government ceasing to create anything valuable, to do anything worthwhile. It becomes organized crime. The end-game is a Mafia state that functions similarly to Russia.

  • Like I've said before [slashdot.org], this is just yet another financial system being created to have a minority of people manage the majority of the wealth, to their own advantage. This is just a new competing system with less regulation created by the crypto bros to wrestle the current system away from the Wall St. bros.

  • From regulations created after many, many people were screwed over (see "Great Depress", "tech bubble", and 2008)?

    • From regulations created after many, many people were screwed over (see "Great Depress", "tech bubble", and 2008)?

      Exactly - regulations exist for a reason and have a clear purpose.

      For anyone who opposes regulations in their industry, the lack of any regulation should *affect them only*, not the greater population. Just like it did Stockton Rush.

  • Please explain exactly why the crypto companies can't or don't "register as broker dealers".

    I suspect it is because they have to pay something to do that, and want something for free instead. But would love a real explanation.

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