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Trade Group Asks SEC to Back Issuer Tokenized Shares
The STA told the SEC only issuer-sponsored tokens should count as actual shares. A decision could take years, but the lobbying fight shapes who controls the $2.6 trillion forecast tokenized stock market.
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The Securities Transfer Association, a trade group representing transfer agents, is pressing the SEC to treat issuer-sponsored tokenized shares as the only legitimate form of blockchain-based equity, CoinDesk reported Monday.
In a letter to the regulator this month, the STA said blockchain-based shares should be actual securities commissioned by the issuer and reflected in its official shareholder records. Tokens created by unaffiliated platforms should not carry the same legal standing, the letter argues.
“An issuer-sponsored token is an actual share or other security of the corporation,” the letter states.
The STA’s request lands as asset managers, crypto firms and brokerages compete to bring stocks, bonds and funds onto blockchain networks. They argue the technology makes securities easier to transfer and settle around the clock. Citi has forecast a $5.5 trillion tokenized securities market by 2030, with tokenized stocks reaching $2.6 trillion.