Core Viewpoint - The rapid development of crypto companies selling tokens linked to stocks is causing concern among traditional financial institutions and regulatory experts, who highlight the potential risks these innovative products pose to investors and market stability [1] Group 1 - The emergence of stock-pegged tokens is a growing trend in the cryptocurrency market [1] - Traditional financial firms are expressing alarm over the implications of these new products [1] - Regulatory experts are warning about the risks associated with the fast-growing nature of these tokens [1]

Core Insights - The recent week has been pivotal for U.S. crypto regulation, characterized by high-level discussions, new investigations, and significant policy proposals, indicating a shift towards greater regulatory cooperation while uncertainties remain in custody and compliance [1] Regulatory Developments - SEC Chair Paul S. Atkins emphasized that the focus is on "harmonization, not merger" between the SEC and CFTC, ensuring both agencies maintain independence while collaborating on crypto oversight [2] - House Republicans initiated an investigation into the deletion of text messages from former SEC Chair Gary Gensler, raising concerns about transparency and compliance within the SEC [3] - The SEC clarified that state-chartered trust companies can temporarily act as crypto custodians, providing short-term certainty for investment advisers and funds while leaving long-term issues unresolved [4] - CFTC Commissioner Caroline Pham announced the end of the rivalry between the SEC and CFTC, highlighting a new era of cooperation in regulatory efforts [5] Innovations in Crypto Trading - The SEC is reportedly developing a framework to enable U.S. stocks to trade on blockchain technology, allowing shares of major companies to be represented as digital tokens, which has garnered support from fintech firms but faced resistance from traditional Wall Street institutions [6]