Wall Street transfer agents ask SEC to mandate company-authorized tokenization of securities, citing market integrity risks from third-party solutions.
Regulation & Gov ·
Transfer agents on Wall Street have petitioned the Securities and Exchange Commission to require that tokenized securities be authorized directly by the issuing company, rather than created through third-party platforms. The agents argue that third-party tokenization solutions could undermine market integrity, though specifics on their formal request remain limited in available reporting.
The push reflects growing tension over how securities tokenization should be regulated as Wall Street accelerates institutional adoption of blockchain infrastructure. Companies issuing tokenized assets currently face ambiguity about whether regulators will accept tokens created by external service providers or mandate that issuers control tokenization themselves. This regulatory gray zone affects settlement efficiency, custody models, and investor protection frameworks that the SEC will need to clarify.
What remains unclear is whether the SEC has formally responded to the transfer agents' petition, what timeline regulators envision for a final guidance, and whether major institutional players beyond transfer agents share this position or prefer alternative approaches to tokenization oversight.