D.C.—Amanda Fischer, Policy Director and COO of Better Markets, released a statement accompanying Better Markets’ comment letter to the Securities and Exchange Commission (“SEC” or “Commission”) concerning its order that permits unregulated exchanges to “tokenize” and offer U.S. stocks for trading:
“With the stroke of a pen, the SEC is attempting to negate 90 years of rules protecting equities, the Commission is threatening investors’ ability to get thebest prices for their trades, potentially undermining their votes in shareholder elections and complicating their ability to receive dividend payments.What makes this worse is that corporate America doesn’t even want this and has told the SEC that its plans may harm capital formation, open companies up to litigation, and complicate internal policies to prohibit insider trading.
“By allowing firms to create ‘shadow’ stocks that trade on systems outside of SEC regulation, the SEC is subordinating the interests of investors and public companies to the crypto industry. The new crypto stock venues will be exempt from rules requiring exchanges to display the best price available for stocks across all markets, rules around protecting customers’ private information, cybersecurity safeguards, insurance protection requirements, and even rules around funding SEC operations, whose costs will instead be shouldered by regulated firms in the stock market.
“The SEC unleashed its plans outside of the necessary notice and comment process, which allows all stakeholders the time to review and comment on rule changes that affect the market. Better Markets calls upon the SEC to rescind its ‘innovation exemption’ and propose any changes of this magnitude within the law and subject to full stakeholder input.”
Better Markets is a non‑profit, non‑partisan, independent organization created after the 2008 financial crisis to champion the public interest in financial markets, support Wall Street reform, and restore a financial system that works for all Americans. The group collaborates with allies, many from the finance sector, to advance pro‑market, pro‑business, and pro‑growth policies that strengthen a safer financial system while protecting jobs, savings, retirements, and more. To learn more, visit
