Wall Street Transfer Agents Lobby SEC, Warning Third-Party Tokens Pose Risks to Market Integrity

The Securities Transfer Association (STA) urged the SEC to give preferential treatment in future rules to company-authorized tokenization of equities, warning that third-party stock tokens could threaten market integrity. The group’s letter targets the legal structure for blockchain-based stocks as Wall Street and crypto firms race to bring equities onchain, according to CoinDesk, arguing issuer-sponsored models preserve official shareholder records and investor rights while third-party custodial or synthetic structures can blur ownership and exposure. Dinari CEO Gabe Otte and tZERO CEO Alan Konevsky said compliant custodial and issuer-sponsored models should be distinguished from synthetic products.