Wall Street transfer agents lobby SEC, warning that third-party tokens pose risks to market integrity
The Securities Transfer Association is lobbying the SEC to prioritize issuer-sponsored tokenized securities over third-party tokens. They argue that issuer-backed tokens are safer and more legally sound for integrating traditional stocks into blockchain networks.
Why it matters
This debate is central to the future of financial market infrastructure as institutions move toward tokenized assets and blockchain-based trading.
The Securities Transfer Association (STA), a trade group representing transfer agents and its members, which include major Wall Street institutions, is urging the Securities and Exchange Commission (SEC) to give preferential treatment to issuer-sponsored tokenized securities compared to tokens issued by intermediary firms as it develops rules for bringing traditional securities onto blockchain rails.
The article presents the trade group's argument while contextualizing the broader industry shift toward tokenization.
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