Securities and Exchange Commission Chair Gary Gensler has a warning about the synthetic stocks popping up on blockchains: Firms selling the tokens to U.S. investors are likely to end up in trouble with regulators.
In a Wednesday speech, Gensler made it clear that tokens that mirror the performance of Amazon.com Inc., Tesla Inc. and other well-known companies are probably still covered by U.S. securities laws.
He also pledged to use all the resources in the SEC’s “enforcement toolkit” to go after those who might be offering such assets without registering them.
“It doesn’t matter whether it’s a stock token, a stable value token backed by securities or any other virtual product that provides synthetic exposure to underlying securities,” Gensler said at an event held by the American Bar Association. “These platforms -- whether in the decentralized or centralized finance space -- are implicated by the securities laws and must work within our securities regime.”
Gensler’s comments referenced what’s known as DeFi, a fast-moving corner of the cryptocurrency market where tokens that track the performance of huge companies have started emerging. The trading has triggered regulatory scrutiny that’s prompted some in the industry to pull back. Cryptocurrency exchange Binance Holdings announced last week that it was phasing out support for tokens linked to equities.
Gensler has repeatedly said that cryptocurrencies need more oversight. In May, he told a House panel that he was looking forward to working with Congress and other regulators “to fill in the gaps of investor protection.” He added that digital token exchanges were ripe for additional rules and urged lawmakers to pass legislation giving the SEC authority to police the trading venues.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
