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Tokenized stocks and private equity may encounter numerous legal obstacles, as the emerging real-world asset (RWA) exists in an ambiguous area that does not confer the same legal privileges to holders as traditional asset proprietors, according to industry professionals and legal experts.<\/p>\n
In correspondence with Cointelegraph, John Murillo, chief business officer of fintech enterprise B2BROKER, stated that investors ought to grasp the fundamental characteristics of any potential tokenized equity instruments<\/a>, including any dividend distributions, profit-sharing agreements, or whether the tokenized RWAs solely offer capital appreciation to the holder. The executive remarked:<\/p>\n “It is essential to recognize that investors do not possess actual shares; they hold tokens issued by intermediaries, which may grant them payments if the underlying shares rise in value or are sold.”<\/p><\/blockquote>\n \u201cThere is no direct claim on corporate assets, no voting privileges, and no access to internal financial data,\u201d Murillo continued.<\/p>\n This significant distinction became more pronounced after the mixed-asset trading platform Robinhood revealed plans to offer OpenAI and SpaceX \u201cprivate equity\u201d tokens to European users, causing OpenAI to clarify<\/a> that the tokens are not equity in the firm<\/a>.<\/p>\n \u201cI think it\u2019s fair to anticipate that incidents like the \u2018OpenAI Token\u2019 situation will happen again, where retail investors are marketed tokenized securities in a manner that leads to significant confusion,\u201d attorney Tyler Yagman of the Ferraro law firm stated to Cointelegraph.<\/p>\n Notwithstanding the confusion, tokenized equities present a \u201cpersuasive\u201d use case, which \u201cintegrate various functions of a securities marketplace into a unified technology,\u201d Yagman added.<\/p>\n The attorney advocated for clear and comprehensive regulations for tokenized equity instruments, which \u201cdemocratize\u201d access to previously unreachable asset classes.<\/p>\n Related: <\/strong><\/em>TradFi body urges SEC to deny special treatment for tokenized stocks<\/strong><\/em><\/a><\/p>\n Robinhood is not the sole brokerage exploring tokenized equities trading<\/a>; the platform is part of an expanding roster of crypto giant firms actively lobbying for tokenized stock trading or already providing those services.<\/p>\n Tokenized stock trading is already operational on crypto exchanges Kraken and Bybit, with over 60 publicly traded companies available for trading<\/a> across both platforms.<\/p>\nCrypto firms advocate for tokenized equities trading in the US to a welcoming SEC<\/h2>\n