HSBC: The divergence in regulatory approaches to tokenized US stocks is intensifying among US regulators, with a clear opposition between TradFi and the crypto industry

HSBC pointed out in its latest research report that U.S. regulators are engaged in intense debates over how the "tokenized U.S. stock market" should be incorporated into the regulatory framework, with significant differences in regulatory attitudes between traditional financial institutions and crypto companies.

Tokenization transforms real assets such as stocks, bonds, and real estate into digital tokens that can circulate on-chain, and how to define and regulate these trading infrastructures has become the core of the controversy. The report states that during the SEC Investor Advisory Committee meeting, there was a clear divide on the question of whether "on-chain stock trading should be regulated in the same way as traditional exchanges." Wall Street institutions, including Citadel Securities, are calling for stricter regulation of DeFi and have submitted a 13-page document to the SEC, arguing that most decentralized trading protocols essentially meet the definition of "exchanges" and should be subject to the same regulatory requirements; the crypto industry, represented by Coinbase's global head of regulatory policy, advocates for differentiated rules for decentralized trading models.

SEC Chairman Paul Atkins emphasized the need to find a balance between compliance and innovation, while Commissioner Caroline Crenshaw warned of the investor risks that tokenized stocks may bring. HSBC believes that regulators are unlikely to allow on-chain U.S. stocks aimed at the U.S. market to have significantly lower regulatory requirements than traditional exchanges.

The report notes that the SEC may adopt a "regulatory sandbox" approach, allowing tokenized stock platforms to pilot under strict conditions to test risk boundaries. In the long term, policy pressure may drive tokenized stock trading towards a licensed, fully regulated on-chain environment. HSBC stated that despite differing positions, TradFi, DeFi, and regulators have reached a consensus on one point: the scale of the tokenized market is rapidly expanding, and the competition over regulatory authority and models indicates its importance is continuously rising.