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The rapidly expanding market for tokenized stocks and private equity remains mired in regulatory ambiguity, with legal experts warning that digital asset holders lack traditional shareholder protections. As platforms like Robinhood and Kraken roll out tokenized offerings, attorneys emphasize these instruments typically provide price exposure without conferring voting rights, dividend claims, or access to corporate financial data.
B2BROKER executive John Murillo cautions investors that tokenized equity represents indirect exposure through intermediary-issued tokens rather than direct ownership. ——"These are synthetic positions tracking asset value, not registered securities conveying legal entitlements,"—— he told Cointelegraph. The distinction gained prominence when OpenAI disavowed connection to Robinhood's European token offerings, revealing【60+】public companies currently available as tokenized instruments on crypto exchanges.
Ferraro Law attorney Tyler Yagman predicts recurring retail investor confusion until comprehensive frameworks emerge. While acknowledging tokenization's potential to democratize access, he notes the technology currently operates in a jurisprudential vacuum. Interestingly, the SEC appears receptive under Chairman Paul Atkins, who recently endorsed advancing financial innovation through tokenization during CNBC interviews.
Major platforms are aggressively expanding tokenized equity services despite legal uncertainties. Centrifuge partnered with S&P Dow Jones to tokenize the【S&P 500】index, while Coinbase reportedly seeks SEC approval for U.S. tokenized stock trading. This aligns with Atkins' public stance favoring innovation, creating unusual regulatory harmony between crypto firms and their traditional overseers.
As the market grows, legal experts urge investors to scrutinize offering documents for clarity on profit-sharing mechanisms and underlying asset claims. With【$2.3 billion】currently locked in RWA protocols according to DeFiLlama, the sector's maturation hinges on resolving fundamental questions about digital ownership rights.