Today in crypto, exchange trade groups are working with global regulators to slow the rise of tokenized stocks. Galaxy Digital, Multicoin Capital and Jump Crypto are said to be raising $1 billion to accumulate Solana. Meanwhile, Bitcoin dropped to $112,174, with some analysts linking the move to a $2 billion whale sell-off.
Global regulators, exchanges push back on tokenized stocks in SEC letter: Report
Exchange industry associations and global regulators are joining forces to curb the growth and adoption of tokenized stocks, arguing that these products do not represent actual equities and expose investors to significant risks.
According to Reuters, the European Securities and Markets Authority (ESMA), the International Organization of Securities Commissions (IOSCO), and the World Federation of Exchanges (WFE) have sent a letter to the US Securities and Exchange Commission’s (SEC) Crypto Task Force, urging stricter regulatory oversight of tokenized stocks.
The organizations argue that tokenized stocks “mimic” the equities they are designed to represent but lack the investor protections built into traditional markets.
“We are alarmed at the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenized US stocks,” the WFE told Reuters, without naming specific firms or platforms. “These products are marketed as stock tokens or equivalent to the stocks when they are not.”
The push carries weight given the influence of the signatories. EMSA is a European Union agency and one of the bloc’s three main financial supervisory authorities.
IOSCO is an international body that sets standards for securities regulation and investor protection across global markets.
WFE, headquartered in the UK, is an industry group representing exchanges and clearing houses worldwide.
The call for clampdowns comes as tokenized securities gain traction on Wall Street and beyond, driven by the promise of greater efficiency, lower costs and broader market access through blockchain technology.
Galaxy Digital, Multicoin, Jump Crypto plan $1B Solana fund: Report
Digital asset companies Galaxy Digital, Multicoin Capital and Jump Crypto are reportedly working to raise $1 billion to buy Solana.
A Bloomberg report citing anonymous sources said on Monday that the three companies are looking to form the largest treasury dedicated to Solana (SOL). It added that the three companies have tapped Cantor Fitzgerald as lead banker.
The plan reportedly involves taking over a publicly traded entity to create a digital asset treasury company focused on SOL. Bloomberg said that the Solana Foundation has endorsed the efforts of the three companies, backing the treasury move.
SOL remains the sixth-largest token by market capitalization, according to CoinGecko. It currently trades at almost $200, up 6.6% in the last 30 days.
Bitcoin falls to $112K as community points to Bitcoin whale sales
Bitcoin saw a sharp fall to $112,174 on Sunday, and Bitcoiners like Willy Woo are blaming the drop and slower price action on Bitcoin’s oldest whales cashing out after holding the asset for years.
“This differential in cost basis, the supply they hold and their rate of selling has profound impacts on how much new capital that needs to come in to lift price,” the Bitcoiner said, noting it now takes over $110,000 of new capital to absorb every Bitcoin.
His comments were made after a seven-year Bitcoin whale rotated almost $2 billion worth of Bitcoin into Ether over the last week, triggering a 2.2% fall in Bitcoin’s price in a short 10-minute window on Sunday.
Bitcoin fell as low as $112,174 before rebounding, while Ether dropped 4% before making a similar recovery.
It also comes four days after another crypto whale made a similar move, selling 670 Bitcoin worth $76 million to open a long ETH position.
