SIFMA Calls on SEC to Shut Door on Tokenised Equities Without Public Review

SIFMA implored the SEC to deny crypto firms’ requests for tokenised equities via exemptive relief.
It warned against bypassing public consultation and called for transparent rulemaking.
Investor protection, oversight, and FINRA membership remain unresolved concerns.

The Securities Industry and Financial Markets Association (SIFMA) has urged the US Securities and Exchange Commission (SEC) to reject crypto firms’ requests to offer tokenised equities through no-action or exemptive relief. In a letter to the SEC’s Crypto Task Force, SIFMA said its members are “reading with significant concern” reports of crypto firms pursuing such offerings through non-public channels.

No-action relief means that the SEC would not recommend enforcement action if a firm proceeds with a given product or service. However, SIFMA argues that this route circumvents critical policy deliberation and fails to provide transparency or public feedback. The group said such decisions should instead follow a “robust public process”.

SIFMA’s letter stressed that issues around investor protections, oversight of unregistered entities, and Financial Industry Regulatory Authority (FINRA) membership remain unresolved. Therefore, the association urged the SEC to conduct a thorough regulatory review involving public and industry engagement.

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

Crypto platforms like Coinbase and Kraken are aiming to provide blockchain-based trading of tokenised stocks, enabling them to directly compete with traditional financial brokerages.

Related: VanEck Unveils VBILL Tokenised Treasury Fund to Bring US Treasuries On-Chain

SEC Eyes Faster Approval Path for Crypto ETFs

Meanwhile, the SEC is considering several crypto ETF proposals, with products tied to assets like SOL, XRP and DOGE under review. Reports suggest that the regulator is developing a “generic listing framework” that may streamline approvals by eliminating the traditional 19b-4 exchange-led process.

One issuer, 21Shares, addressed this possibility in a statement to the Block:

If such a framework were to be implemented, it could significantly reduce the current complexity and uncertainty involved in the listing process by removing much of the guesswork and ambiguity inherent in the existing 19b-4 approval procedure.