The Securities Industry and Financial Markets Association (SIFMA) has voiced concerns regarding the tokenization of stocks by cryptocurrency firms. In a letter to the SEC's cryptocurrency task force, SIFMA expressed apprehension about the potential risks and regulatory gaps associated with this emerging trend. SIFMA emphasizes the need for a rigorous public process, urging the SEC to solicit feedback from industry stakeholders before allowing widespread adoption of stock tokenization. They question the appropriateness of crypto firms becoming members of the Financial Industry Regulatory Authority (FINRA) under current regulations. A key concern is investor protection in this new landscape. This comes after Kraken announced support for trading 60 tokenized U.S. stocks, highlighting the increasing push for integrating traditional assets with the cryptocurrency space. SIFMA's stance underscores the ongoing debate about how to regulate crypto innovation while safeguarding investors and market stability. ```

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