SEC Warns on Tokenized Stocks as Firms Push Boundaries

SEC Warns on Tokenized Stocks as Firms Push Boundaries
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The SEC has reiterated that tokenized securities must comply with existing regulations, as firms like Robinhood and Kraken expand offerings. Securitize CEO Carlos Domingo emphasizes native tokenization’s role in maintaining investor rights. Regulatory clarity remains a key concern amid growing market experimentation.

  • Native tokenization maintains traditional stock entitlements (voting/dividends) while avoiding counterparty risk.
  • SEC warns tokenized securities remain subject to existing laws, with no 'magical' blockchain exemptions.
  • Robinhood and Kraken's new tokenized stock products include geographic restrictions and KYC requirements.
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