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
