Several crypto industry executives say the Ministry of Finance (DAT) of Digital Assets (DAT) companies have stolen risks in their shares into stocks on the blockchain.
“Blockchain trades 24/7, while traditional markets have specific operating hours,” Kadan Stadelmann, chief technology officer of Komodo decentralized exchange platform, told Cointelegraph.
The sharp price movements that occur outside of traditional market hours may result in shares of a Treasury company with issued marks and traditional stocks, which does not have enough time to deal with the price hit.
Stadelmann added that smart contracts further amplify the risk by code exploiting or cracking the risk of underlying funds held by cryptocurrency companies and tokenized stocks. Secondswap Decentralized Exchange CEO Kanny Lee said:
“Tag data equity creates a synthesis on top of the synthesis. Investors end up exposing two times, once to volatility in fiscal cryptocurrencies and again to the complexity of corporate equity, governance and securities laws.
Now that dozens of companies are becoming more and more popular, the U.S. Securities and Exchange Commission (SEC) is making fun of the capital market on 24/7. However, there is a lack of legal clarity to keep tokenized stocks in a regulatory grey area.
Related: SEC’s token stock push benefits for cryptocurrencies: Dragonfly executives
SEC and stock exchanges drive token stocks and 24/7 trading
The US SEC is exploring blockchain-based stock trading to modernize traditional trading systems that require nights, weekends and holidays, while having a long settlement time compared to digital asset technology.
SEC officials are weighing plans to allow regulated retail cryptocurrency exchanges to provide tokenized stock trading to customers in the U.S.
Traditional stock exchanges such as the technology-focused Nasdaq and the New York Stock Exchange (NYSE) are also pushing to expand trading hours to keep up with the 24/7 cryptocurrency market.
Nasdaq announced plans to offer 24-hour trading in March, five days a week, and launch an expanded trading hours sometime in the second half of 2026.
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