Wall Street is facing a major challenge as upstart cryptocurrency firms seek to revolutionize stock trading with “tokenized” versions of stocks like Apple, Tesla, and JPMorgan Chase. These firms aim to offer investors the ability to trade these assets cheaply around the clock and globally.
President Donald Trump’s administration has been instrumental in driving this transformation, placing industry allies in top regulatory positions and sparking optimism about crypto’s future in the US. However, traditional finance heavyweights are pushing back, lobbying for stricter regulations that would treat tokenized stocks like traditional ones.
Crypto firms believe that a looser set of trading rules could benefit their business models and create new opportunities for financing and trading. They argue that tokenization is inevitable and will eventually replace decades-old financial infrastructures.
The SEC’s role in shaping these new rules remains uncertain, with some firms seeking relief from existing regulations to make their products viable. The prospect of tokenized stocks has sparked excitement among crypto players, who see it as a way to usurp TradFi counterparts.
However, not everyone is convinced that tokenization is the future. Traditional finance firms argue that regulatory changes could create an uneven playing field and split the market. While some major players like BlackRock have already joined the tokenization frenzy, others are skeptical about the appeal of blockchain-based versions of iconic stocks.
As the debate rages on, everyday investors remain uncertain about whether they want to hold blockchain-based versions of their favorite stocks. Despite crypto’s growing popularity, it remains a niche business, with only 8% of Americans using it in 2024, according to the Federal Reserve.
Source: https://www.politico.com/news/2025/08/08/trump-crypto-wall-street-overhaul-00499464