**[Securities Transfer Association Lobbies SEC: Third-Party Stock Tokens May Threaten Market Integrity]** Odaily Planet Daily News – As competition in the tokenization of capital markets intensifies, the Securities Transfer Association (STA) recently submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), warning that stock tokens issued by third-party entities could undermine market integrity. The STA urged regulators to prioritize support for tokenized securities authorized by publicly listed companies in future rulemaking. Representing multiple Wall Street transfer agent firms, STA members believe that genuine tokenized stocks should be formally authorized by issuing companies and recorded in official shareholder registries, rather than being created as "wrapped" token products by independent platforms. The association pointed out that third-party stock tokens could confuse investors about the actual rights they hold and expose them to platform credit, custody, and operational risks, while failing to establish a direct legal relationship with the issuing company. As a result, STA argued that any innovative exemptions, pilot programs, or permanent regulatory frameworks for tokenized securities should prioritize issuer-supported models. The STA also urged the SEC to reform the existing Direct Registration System (DRS), stating that the current U.S. securities custody system is inadequate to meet the real-time transfer and settlement demands of on-chain securities. It recommended that regulators collaborate with the Depository Trust & Clearing Corporation (DTCC) to optimize digital securities infrastructure. Currently, the approximately $2 billion global tokenized stock market is predominantly led by third-party models, including products launched by Ondo Finance and Kraken. Meanwhile, institutions like Securitize and Figure have adopted issuer-authorized models. (CoinDesk)