SIFMA argues lax tokenisation rules could ‘undermine supremacy’ of US capital markets

Core Viewpoint - The Securities Industry and Financial Markets Association (SIFMA) has expressed concerns to the SEC regarding its Project Crypto, which aims to create a tailored exemption regime for crypto projects, emphasizing that the existing regulatory framework is essential for maintaining the integrity of American capital markets [2][3]. Group 1: Regulatory Concerns - SIFMA cautions that the regulatory complexity is a key factor that contributes to the trustworthiness of American capital markets [2]. - The organization urges the SEC to ensure that innovation in crypto does not undermine the regulatory framework relied upon by millions of American families [3]. - SIFMA argues that existing securities laws are adequate to regulate crypto assets, suggesting that the same regulations applicable to traditional securities should apply to crypto versions [5][6]. Group 2: Tokenisation Market Insights - Tokenisation, which involves bringing traditional financial instruments onto a blockchain, is currently valued at approximately $36 billion [4]. - Standard Chartered projects that the tokenisation sector, excluding stablecoins, could expand to as much as $2 trillion by 2028 [4]. - The technology behind tokenisation is believed to facilitate faster settlement times and enhance transparency among market participants [4].