The American Financial Industry Association opposes tokenized stocks and urges the SEC to reject the crypto companies' exemption requests

ChainCatcher news, according to a letter from the Securities Industry and Financial Markets Association (SIFMA) to the SEC's cryptocurrency working group, opposing the requests from crypto companies like Coinbase and Kraken for exemptions to issue tokenized stocks. SIFMA stated that the related requests are "seriously concerning" and urged the SEC to gather public input through an open process to avoid rapid approvals in an opaque manner.

SIFMA emphasized that such significant policies should not be handled directly through "no-action" or exemption forms. The association also questioned whether the SEC can regulate unregistered entities and protect investors' rights.