The World Federation of Exchanges has urged equity market regulators to formally consult listed issuers before permitting tokenised equities on crypto platforms, arguing that third-party tokenised stocks should not receive exemptions from normal securities rules. In its statement to policymakers, the industry body says these instruments are typically options or share mimics offered without issuer involvement and should be subject to the same disclosure, trading and post-trade standards as traditional securities. The WFE argues that third-party tokenisation offers no benefit to issuers but can create reputational risk if tokens are mistaken for official shares, while making it difficult and costly for issuers to identify token holders. It also warns that moving trading into unregistered or unregulated venues could weaken price discovery and liquidity, raise issuers' cost of capital, and encourage activity outside established public equity markets, including the existing framework for US equity listing and trading.
World Federation of Exchanges2026-05-21
World Federation of Exchanges urges regulators to consult issuers before allowing tokenised equities on crypto platforms
The World Federation of Exchanges has urged equity market regulators to consult listed issuers before allowing tokenised equities on crypto platforms and to deny third-party tokenised stocks exemptions from standard securities rules. It argues that such tokens, typically options or share mimics issued without issuer involvement, should meet the same disclosure, trading and post-trade standards as traditional securities and warns they create reputational risk, obscure token holder identification and may weaken price discovery, liquidity and the public equity market framework.