Is it important that the action you buy is in the form of a token on a blockchain? We could soon discover it because the Securities and Exchange Commission was going to move forward on a plan to allow companies to offer “on chain” scholarships. The plan would be a boon for companies like Coinbase and Robinhood, which are stimulating to extend their crypto offers, but could also present a risk for investors, according to large financial companies like Citadel Securities, which require that the agency makes the plan slow down.
According to information, quoting anonymous sources, the SEC moves quickly to implement the action plan on the blocking within the framework of the Pro-Crypto agenda of the Trump administration: “The E ff or the SEC reducing the exchange of action would not apply, the population would not allow trade or the period of limitation of the exunionation. To start quickly.
In practice, this would mean that an investor could soon use his Coinbase portfolio or the Crypto platform in Robinhood to buy popular stocks like Apple or Netflix, storing them alongside traditional cryptography assets like Bitcoin or Ethereum.
These offers are not entirely new. Robinhood already offers them on foreign markets, as is the Kraken Coinbase rival, of which the CEO recently said Fortune These tokenized actions have proven to be particularly popular in places like South Africa, because blockchain offers allow investors to access American shares without paying exorbitant brokerage commissions.
Tokenized actions offer the same thing as their traditional counterpart: an opportunity for an investor to have a piece of a company and to make a profit if the value of the action increases or if the company pays a dividend. But the property mechanisms are not the same. In the case of a purchase of conventional shares, the Customer plans a purchase order and brokerage acquires the stock on their behalf, awarding them property rights. Tokenized actions, on the other hand, imply an additional step in which a brokerage house creates a token – recorded on a blockchain like Ethereum – which represents a complaint on the underlying part or, in some cases, to a fund which has a basket of shares.
The advantages of tokenizing actions, according to supporters, are a faster process to establish professions. Currently, this process can take one day or more, and during intense negotiation periods, has resulted in market collapses. In 2021, the CEO of Robinhood, Vlad Tenev, published a blog article entitled “It is time for real -time regulations” after a regulation backwards during the summit of stock of the Mesmes de l’ére Cavid created a liquidity crisis for the company.
Although exchanges and regulations based on blockchain are faster than the existing system, Citadel titles – which manages about 35% of detail actions in the United States – have been able to have a disturbing effect on the market. There is also the question of compliance, and if token actions will come with traditional railing to prevent money laundering and other illicit activities.
In all cases, the launch of tokenized actions in the United States is unlikely to be imminent because, according to information, the inherited actors would probably pursue the dry to force it to engage in a detailed regulatory examination rather than simply granting exemptions to the rules for negotiating existing actions.
