The reported plan would let companies pilot blockchain-based stock tokenization with lighter compliance, drawing concerns from Citadel Securities and SIFMA about market fragmentation and regulatory arbitrage.
The U.S. Securities and Exchange Commission is reportedly preparing a policy that would allow crypto companies to test blockchain-based stock tokenization, including trading tokenized U.S. equities, without fully meeting existing disclosure and investor-protection requirements. Odaily said SEC Chair Paul Atkins was cited as saying the proposal has prompted concerns from Citadel Securities and SIFMA, which warned about potential liquidity fragmentation and regulatory arbitrage. The SEC has not publicly commented. The reported initiative points to a possible regulatory sandbox-style approach, in which firms can trial new market structures under modified rules while regulators assess risks around investor safeguards, market quality and oversight.