HSBC: US ​​regulators are increasingly divided over how to regulate "tokenized US stocks," with TradeFi and the crypto industry holding clearly opposing positions.

In its latest research report, HSBC points out that US regulators are engaged in heated debate over how to incorporate tokenized US stocks into the regulatory framework, with traditional financial institutions and crypto companies showing significant differences in their regulatory attitudes. Tokenization converts real-world assets such as stocks, bonds, and real estate into digital tokens that can circulate on-chain, and how to define and regulate these trading infrastructures has become the core of the controversy. The report states that at the SEC Investor Advisory Committee meeting, there was a clear divide on whether on-chain stock trading should be regulated in the same way as traditional exchanges. Wall Street institutions, including Citadel Securities, called for stricter regulation of DeFi and submitted a 13-page document to the SEC, arguing that most decentralized trading protocols essentially meet the definition of "exchanges" and should be subject to the same regulatory requirements; the crypto industry, represented by Coinbase's global head of regulatory policy, advocates for differentiated rules for decentralized trading models. SEC Chairman Paul Atkins emphasized the need to find a balance between compliance and innovation, while Commissioner Caroline Crenshaw warned of the potential investor risks associated with tokenized stocks. HSBC believes regulators are unlikely to ultimately allow on-chain US stocks targeting the US market to have significantly lower regulatory requirements than traditional exchanges. The report points out that the SEC may adopt a "regulatory sandbox" approach, allowing tokenized stock platforms to pilot under strict conditions to test risk boundaries. In the long term, policy pressure may drive tokenized stock trading towards permissioned, fully regulated on-chain environments. HSBC states that despite differing positions, TradFi, DeFi, and regulators agree on one point: the tokenization market is rapidly expanding, and the struggle surrounding regulatory power and models demonstrates its continued rise in importance (CoinDesk).