Crypto race to tokenize stocks raises investor protection flags


Sparks strike representation of cryptocurrency Bitcoin in this illustration created on November 24, 2024. REUTERS/Dado Ruvic/Illustration

NEW YORK/PARIS (Reuters) -A race by crypto companies to sell tokens pegged to stocks is raising alarm bells among traditional financial firms and regulatory experts who warn that the fast-growing novel products pose risks to investors and market stability.

Buoyed by President Donald Trump's pro-crypto stance and his administration's push for friendly regulations, the crypto industry is rushing to capitalize on a global surge in enthusiasm for the sector.

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