Crypto race to tokenize stocks raises investor protection flags
By Hannah Lang and Elizabeth Howcroft
NEW YORK/PARIS (Reuters) -A race by crypto companies to sell tokens pegged to stocks is raising alarm bells among traditional financial firms and regulatory experts who warn that the fast-growing novel products pose risks to investors and market stability.
Buoyed by President Donald Trump‘s pro-crypto stance and his administration’s push for friendly regulations, the crypto industry is rushing to capitalize on a global surge in enthusiasm for the sector.
Robinhood, Gemini and Kraken among others have launched tokenized stocks in Europe, while Coinbase, Robinhood and startup Dinari are seeking approval to launch similar products in the United States. Nasdaq, meanwhile, last month became…
