Kraken Wants Wall Street on Blockchain: SEC Discussion Heats Up
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The post Kraken Wants Wall Street on Blockchain: SEC Discussion Heats Up appeared first on Coinpedia Fintech News Kraken, one of the world’s biggest crypto exchanges, has found itself in the middle of Wall Street’s next big debate: tokenized stocks. On Monday, the exchange sat down with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss how traditional assets like stocks could be brought on-chain through tokenization. The meeting included representatives from Kraken’s parent company Payward, its securities arm, and lawyers from WilmerHale. According to the SEC memo, the agenda focused on Kraken’s proposed tokenized trading system, the regulatory hurdles it faces, and what tokenization could mean for everyday investors. Showing excitement, Nate Geraci, said that tokenization in the US is on the way. “Included the legal & regulatory framework for operating a tokenized trading system in the *US*. It’s coming”. While no decisions have been made yet, the ongoing discussions highlight a growing recognition that digital assets may soon move from the edges of finance into the mainstream. Kraken vs SEC: Why Tokenization Matters Tokenized stocks are digital versions of traditional equities that can trade 24/7, outside the limits of Wall Street hours. Kraken and Robinhood have already jumped in, Kraken launched its service in May, giving non-U.S. investors access to American equities, while Robinhood rolled out a similar product in Europe this summer. Kraken even expanded its offering last week to the Tron blockchain. But global regulators aren’t all cheering. Exchange associations have been pressuring the SEC to apply tighter crypto rules, warning that these products lack the investor safeguards found in traditional markets. For the SEC, that’s the big question: how to regulate a market that never sleeps. The Size of the Opportunity Right now, tokenized stocks are tiny compared to global finance. Data…
