The World Federation of Exchanges (WFE) is urging financial regulators to tighten oversight of tokenized stocks, warning of hidden risks and potential damage to market integrity. These products replicate stocks without offering the same protections, confusing investors. The WFE recommends expanding securities laws to prevent such outcomes. Tokenized equities are gaining momentum, with platforms like Robinhood and Kraken offering new ways for retail users to invest. Despite bullish forecasts, the market remains small compared to its potential. Regulatory clarity is needed for further growth.

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