TLDR
SIFMA asks SEC to reject crypto companies’ requests for special exemptions to offer tokenized stocks
Trade group wants transparent public comment process instead of no-action relief for crypto firms
Coinbase and Kraken are seeking approval to offer tokenized equities trading in the US
SEC’s Crypto Task Force is reviewing multiple requests for blockchain-based securities trading
Kraken launched tokenized stock trading Monday but excluded US and other major markets
The Securities Industry and Financial Markets Association has formally asked the SEC to deny requests from crypto companies seeking special treatment to offer tokenized stocks. The trade group sent a letter to the SEC’s Crypto Task Force this week expressing concern about crypto firms requesting no-action or exemptive relief.
SIFMA represents securities issuers and finance firms in the traditional market. The organization argues that crypto companies should go through standard regulatory processes rather than receiving exemptions.
No-action relief would prevent the SEC from recommending enforcement action against firms launching tokenized stock products. Exemptive relief allows the SEC to exclude certain products from securities laws for testing purposes.
The trade group believes these exemptions could allow crypto firms to offer securities outside established regulatory structures. SIFMA stated that policy questions about tokenized securities are too important to address through immediate relief requests.
Crypto Exchanges Push for Tokenized Securities
Major crypto exchanges are actively pursuing tokenized stock offerings in the US market. Coinbase’s chief legal officer Paul Grewal reportedly called tokenized equities a “huge priority” for the exchange.
Kraken launched tokenized stock trading on Monday, offering tokens backed by shares in major US companies like Apple and Microsoft. However, the exchange restricted access from US, Canadian, EU, UK, and Australian users.
The SEC’s Crypto Task Force was created in January under Republican Commissioner Hester Peirce following the new Trump administration. The task force is reviewing dozens of proposals for crypto exchange-traded funds tracking SOL, XRP, and DOGE.
Commissioner Peirce said in May that the SEC is considering exemptive orders for firms using blockchain to issue, trade, and settle securities. She noted that registration requirements could be too expensive for many companies.
Traditional Finance Pushes Back
SIFMA’s opposition reflects broader resistance from traditional finance to crypto innovation. Alexander Grieve from venture firm Paradigm wrote on X that SIFMA members want to protect their market position.
A good reminder that crypto in DC isn’t operating in a vacuum. For every reg topic / tech advance there’s incumbent opposition.
Stablecoins? Banks
Tokenized equities? NYSE, DTCC, SIFMA
Derivatives + DeFi? CME, ICE
The old gods of finance do not share power lightly. https://t.co/qTjsvBgsLR
— Alexander Grieve (@AlexanderGrieve) July 2, 2025
Grieve noted that tokenized securities could enable many more platforms to offer trading on traditional stocks. He compared this to banks opposing stablecoins and crypto derivatives competing with traditional finance products.
Bill Hughes from Consensys said SIFMA’s procedural argument is reasonable. He stated that changing rules for retail securities access should go through notice and comment rulemaking rather than individual exemptions.
The debate highlights tensions between crypto innovation and existing regulatory frameworks. Hughes described the situation as a “regulatory policy mess” with assets existing in both crypto and traditional finance worlds.
Reports suggest the SEC is developing generic listing standards for crypto ETFs. This could eliminate the usual 19b-4 process led by exchanges and speed up approval timelines.
The crypto industry continues pushing for tokenized securities despite traditional finance opposition. Companies argue that blockchain technology offers improved efficiency and access compared to current systems.