Tokenized securities need competition, not gatekeepers

Patrick McHenry, vice chairman at Ondo Finance and former chair of the House Financial Services Committee, argued that tokenized securities should be allowed to compete rather than being forced into a single approved model, according to CoinDesk. He said tokenized stocks can take multiple forms—market-infrastructure tokenization, customer-driven products backed by U.S.-listed securities or ETFs, and issuer-sponsored tokenization—and warned against misleading “stock-like” marketing and private walled gardens that could curb competition.