Warning on Tokenized Stock Risks
Global exchanges urged the SEC to curb broad crypto exemptions and tighten oversight, warning tokenized stocks threaten investor protection, market integrity and could create regulatory arbitrage and systemic risks.
custody risk
Tokenizing stocks of DATs compounds investor risk: Crypto execs
Crypto executives warn that tokenizing stocks of DATs magnifies investor risk, citing heightened opacity, custody challenges and regulatory gaps that could exacerbate losses, volatility and market fragmentation.