SEC’s crypto enthusiasm poses risks to investors: WFE
“These products are marketed as stock tokens or the equivalent to stocks when they are not. This development poses multiple and interconnected risks,” it said — adding, “These offerings often bypass established safeguards, creating risks for investors, undermining market integrity, and enabling regulatory arbitrage.”
Given these concerns, the WFE call on the SEC to ensure that firms aren’t using exemptive relief in the crypto space, “to circumvent statutory obligations.”
The group said that, while it supports the principle of granting exemptive relief from specific requirements to ensure a level playing field, “we are concerned that the broad use of such relief presents great risks to investors, market…
