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Same Game, New Tech: Why Wall Street Wants "One Rulebook" for Tokenization
The "Plumbing" is changing, but the water is still the same.
Traditional finance heavyweights—including JPMorgan, Citadel, and SIFMA—recently sat down with the SEC’s Crypto Task Force to deliver a clear message: A security is a security, even if it lives on a blockchain. While the tech behind tokenization is revolutionary, these firms argue that the economic reality hasn't changed. Here’s the breakdown of why they’re pushing for the "Old School" rules:
1. Consistency is Key
The group warned that creating a "lite" regulatory framework for blockchain-based stocks could poke holes in decades of investor protections. They aren't looking for shortcuts; they're looking for a level playing field.
2. Form Over Substance
Whether a stock is issued natively "on-chain" or wrapped in a digital token, the underlying value remains the same. The industry argument is simple: If it acts like a security, it should be treated like one by the SEC—no matter how it’s "plumbed."
3. Rulemaking, Not Workarounds
Instead of informal guidance or case-by-case favors, these firms are calling for formal rulemaking. They want a predictable, legal foundation that allows them to modernize market infrastructure without losing the integrity of the current system.
The Big Takeaway: Wall Street isn't fighting the technology—they’re embracing it. But they want to ensure that as we move to a T+0, tokenized world, we don't leave market stability behind.
What’s your take? Do you think applying 1930s-era laws to 2020s technology will foster innovation, or will it eventually act as a bottleneck for the tokenized economy?
I can help you dive deeper into this—would you like me to draft a follow-up post focused specifically on how this might impact the future of DeFi and decentralized exchanges?
#WallStreet #Tokenisation #SIFMA #GoldOnTheRise #Write2Earn
$BTC
$BNB
$SOL
Traditional finance heavyweights—including JPMorgan, Citadel, and SIFMA—recently sat down with the SEC’s Crypto Task Force to deliver a clear message: A security is a security, even if it lives on a blockchain. While the tech behind tokenization is revolutionary, these firms argue that the economic reality hasn't changed. Here’s the breakdown of why they’re pushing for the "Old School" rules:
1. Consistency is Key
The group warned that creating a "lite" regulatory framework for blockchain-based stocks could poke holes in decades of investor protections. They aren't looking for shortcuts; they're looking for a level playing field.
2. Form Over Substance
Whether a stock is issued natively "on-chain" or wrapped in a digital token, the underlying value remains the same. The industry argument is simple: If it acts like a security, it should be treated like one by the SEC—no matter how it’s "plumbed."
3. Rulemaking, Not Workarounds
Instead of informal guidance or case-by-case favors, these firms are calling for formal rulemaking. They want a predictable, legal foundation that allows them to modernize market infrastructure without losing the integrity of the current system.
The Big Takeaway: Wall Street isn't fighting the technology—they’re embracing it. But they want to ensure that as we move to a T+0, tokenized world, we don't leave market stability behind.
What’s your take? Do you think applying 1930s-era laws to 2020s technology will foster innovation, or will it eventually act as a bottleneck for the tokenized economy?
I can help you dive deeper into this—would you like me to draft a follow-up post focused specifically on how this might impact the future of DeFi and decentralized exchanges?
#WallStreet #Tokenisation #SIFMA #GoldOnTheRise #Write2Earn
$BTC
$BNB
$SOL
What is the SEC's Crypto Task Force meeting with SIFMA about?
The meeting aims to tighten and clarify regulations for the crypto market in the U.S.
💡 Key points made clear:
1️⃣ Expanding securities regulations: Applying traditional securities regulations to crypto (e.g., coins that resemble stocks must be regulated as strictly as stocks).
2️⃣ Clear classification: Determining which tokens are securities and which are merely digital commodities (like digital gold).
3️⃣ Protecting small investors: Limiting small-cap investors from putting money into high-risk coins to avoid losing all their money.
4️⃣ Keeping a level playing field: Exchanges and token issuers must be transparent and compete fairly according to the law.
5️⃣ Cross-border regulations: Establishing new laws suitable for crypto, as crypto is easily traded globally.
6️⃣ Preparing for the future of DeFi: When traditional finance and DeFi (decentralized finance) converge, the law will be ready to manage.
👉 In summary: The U.S. is considering tightening regulations to make crypto safer and more transparent — but small investors may find it harder to “ride the wave” freely as before. #SIFMA
The meeting aims to tighten and clarify regulations for the crypto market in the U.S.
💡 Key points made clear:
1️⃣ Expanding securities regulations: Applying traditional securities regulations to crypto (e.g., coins that resemble stocks must be regulated as strictly as stocks).
2️⃣ Clear classification: Determining which tokens are securities and which are merely digital commodities (like digital gold).
3️⃣ Protecting small investors: Limiting small-cap investors from putting money into high-risk coins to avoid losing all their money.
4️⃣ Keeping a level playing field: Exchanges and token issuers must be transparent and compete fairly according to the law.
5️⃣ Cross-border regulations: Establishing new laws suitable for crypto, as crypto is easily traded globally.
6️⃣ Preparing for the future of DeFi: When traditional finance and DeFi (decentralized finance) converge, the law will be ready to manage.
👉 In summary: The U.S. is considering tightening regulations to make crypto safer and more transparent — but small investors may find it harder to “ride the wave” freely as before. #SIFMA
Representatives from the traditional financial sector of the United States and leaders of the crypto industry held a closed-door meeting, reports Decrypt. During the meeting, the parties attempted to resolve key differences regarding the draft bill on the structure of the crypto asset market.
According to sources familiar with the negotiations, the meeting took place on January 8, 2025, and was described by participants as "constructive." Representatives from #SIFMA — one of the key lobbying structures on Wall Street — as well as delegates from the crypto community focused on decentralized finance, took part in the discussion.
Sources note that the greatest progress was made specifically on the issue of #DeFi . Previously, SIFMA and the banking lobby had criticized provisions in the draft bill that proposed regulatory exemptions for certain decentralized services and developers.
According to sources familiar with the negotiations, the meeting took place on January 8, 2025, and was described by participants as "constructive." Representatives from #SIFMA — one of the key lobbying structures on Wall Street — as well as delegates from the crypto community focused on decentralized finance, took part in the discussion.
Sources note that the greatest progress was made specifically on the issue of #DeFi . Previously, SIFMA and the banking lobby had criticized provisions in the draft bill that proposed regulatory exemptions for certain decentralized services and developers.
SIFMA Urges the SEC to Clarify the Regulatory Approach to Cryptocurrencies
Key Highlights of the Story
The Securities Industry and Financial Markets Association (#SIFMA ) urges the U.S. Securities and Exchange Commission (SEC) to establish clear rules for cryptocurrencies: The trade group calls for consistent and technologically progressive regulations to align cryptocurrencies with traditional finance.
Focusing on custody, trading, and tokenization: SIFMA's meeting with the SEC (#SEC ) pushes for unified oversight on the issuance of digital assets and their infrastructure.
The Securities Industry and Financial Markets Association (#SIFMA ) urges the U.S. Securities and Exchange Commission (SEC) to establish clear rules for cryptocurrencies: The trade group calls for consistent and technologically progressive regulations to align cryptocurrencies with traditional finance.
Focusing on custody, trading, and tokenization: SIFMA's meeting with the SEC (#SEC ) pushes for unified oversight on the issuance of digital assets and their infrastructure.
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