The World Federation of Exchanges calls on the U.S. SEC not to allow crypto companies to "bypass" the rules.

PANews, November 27 - According to a report by Reuters, the World Federation of Exchanges (WFE) is an international non-profit organization of major securities exchanges worldwide. In a letter to the U.S. Securities and Exchange Commission (SEC) this week, it stated that the regulator's plan to allow crypto companies to sell “tokenized” stocks without regulation may harm investor interests. Several crypto companies plan to sell crypto tokens linked to listed stocks; however, to sell such products in the U.S., unregistered crypto companies must obtain a no-action letter or exemption from the SEC. SEC Chairman Paul Atkins stated that the agency is working on establishing an “innovation exemption” provision in securities law to enable crypto businesses to attempt new business models. The WFE pointed out in its letter that the exemption could pose risks to market integrity and weaken investor protection. WFE CEO Nandini Sukumar stated, “The SEC should avoid granting exemptions to companies that attempt to circumvent regulatory principles that have protected the market for decades.” The SEC published WFE's letter on its website but declined to comment. James Auliffe, head of the WFE technical working group, stated, “We and the cryptocurrency platforms should compete in a fair competitive environment and should be subject to the same rules.”