The accelerating drive to turn listed company stocks into digital tokens risks introducing crypto-like dangers into the US equity market with few benefits. The potential drawbacks include money laundering, insider trading and even theft – as the recent US$6.3 billion (S$8.1 billion) Binance Holdings hack shows. The only winners would be trading platforms hunting for extra income.
The Securities and Exchange Commission (SEC) plowed ahead with efforts to promote tokenised securities – digital entries of rights or ownership in shares, recorded on a blockchain or distributed ledger – in September, suspending many rules and investor protections for firms trying to develop the market.
Source : https://www.straitstimes.com/business/invest/trade-us-stocks-like-digital-tokens-soon
