The post Global Exchanges Urge SEC to Curb Broad Crypto Exemptions, Warn on Tokenized Stock Risks appeared on BitcoinEthereumNews.com. In brief The World Federation of Exchanges urged the SEC to limit exemptions for crypto platforms. Tokenized stock products marketed without proper safeguards have “alarmed” the federation over possible risks. The SEC is weighing a sandbox-style framework that could allow temporary relief for crypto firms. A federation of stock exchanges has sent a letter to the U.S. Securities and Exchange Commission, urging the regulator to remove special exemptions given to crypto firms offering tokenized stocks. In a letter sent last week to the SEC’s Crypto Task Force, the World Federation of Exchanges, whose members include the NYSE, Cboe, and CME Group, told the agency that exemptive relief should not be used to fast-track crypto trading platforms into roles that resemble national securities exchanges without requiring full compliance. The federation stated that it is “alarmed” at “the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenised US stocks,” citing a position paper it published in late August this year.  Such products are “marketed as stock tokens or the equivalent to stocks when they are not,” the letter signed by CEO Nandini Sukumar reads. “While we are supportive of the principle of exemptive relief, we are concerned that the broad use of such relief presents risks to investors and market integrity,” the letter continued. Exemptive relief is a regulatory mechanism that allows a company or platform to bypass specific legal requirements when the SEC determines that doing so is in the public interest and doesn’t harm investor protection. It can be granted either temporarily or permanently. The WFE said it supports the SEC’s right to use exemptive relief, but argued that it is appropriate only where “relief is reasonably necessary for a firm to provide a product or service on a level playing field” as well as… The post Global Exchanges Urge SEC to Curb Broad Crypto Exemptions, Warn on Tokenized Stock Risks appeared on BitcoinEthereumNews.com. In brief The World Federation of Exchanges urged the SEC to limit exemptions for crypto platforms. Tokenized stock products marketed without proper safeguards have “alarmed” the federation over possible risks. The SEC is weighing a sandbox-style framework that could allow temporary relief for crypto firms. A federation of stock exchanges has sent a letter to the U.S. Securities and Exchange Commission, urging the regulator to remove special exemptions given to crypto firms offering tokenized stocks. In a letter sent last week to the SEC’s Crypto Task Force, the World Federation of Exchanges, whose members include the NYSE, Cboe, and CME Group, told the agency that exemptive relief should not be used to fast-track crypto trading platforms into roles that resemble national securities exchanges without requiring full compliance. The federation stated that it is “alarmed” at “the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenised US stocks,” citing a position paper it published in late August this year.  Such products are “marketed as stock tokens or the equivalent to stocks when they are not,” the letter signed by CEO Nandini Sukumar reads. “While we are supportive of the principle of exemptive relief, we are concerned that the broad use of such relief presents risks to investors and market integrity,” the letter continued. Exemptive relief is a regulatory mechanism that allows a company or platform to bypass specific legal requirements when the SEC determines that doing so is in the public interest and doesn’t harm investor protection. It can be granted either temporarily or permanently. The WFE said it supports the SEC’s right to use exemptive relief, but argued that it is appropriate only where “relief is reasonably necessary for a firm to provide a product or service on a level playing field” as well as…