A coalition of major stock exchanges has urged the U.S. Securities and Exchange Commission to avoid granting exemptions that would allow crypto firms to sell tokenized versions of publicly listed equities without meeting traditional regulatory requirements. Several crypto companies are seeking permission to offer blockchain-based tokens tied to existing stocks, a model aimed at retail investors who want indirect exposure to equities. To operate in the U.S., these firms would need either a no-action letter or a specific exemption, as many are not registered broker-dealers.
The World Federation of Exchanges (WFE), whose membership includes Nasdaq and Deutsche Börse, warned in a letter dated November 21, 2025, that such relief could weaken long-standing safeguards. WFE CEO Nandini Sukumar stated that “the SEC should avoid granting exemptions to firms attempting to bypass regulatory principles that have safeguarded markets for decades.”
The SEC, which published the letter but declined to comment, is reportedly considering an “innovation exemption” that would permit limited experimentation. However, the WFE contends that any regulatory changes must preserve market integrity, noting that parts of the crypto sector now compete directly with established exchanges. James Auliffe, Head of the WFE’s technology working group, said that “we and the crypto platforms should be competing on a level playing field,” while also questioning whether blockchain-based trading provides benefits that outweigh its costs.
