Bitcoin has recovered to around $77,000 after a volatile three-week correction that saw the cryptocurrency lose nearly 39% from its October 2025 peak of $1,26,287. According to The Economic Times, the recovery came after U.S. President Trump announced on May 23 that a U.S.-Iran peace framework was 'largely negotiated' and that the Strait of Hormuz could reopen. Bitcoin was trading at $77,298, registering a marginal jump of 0.84% in the past 24 hours, with the cryptocurrency moving above the $75,000 level as improving macro sentiment and easing geopolitical concerns supported broader risk appetite across financial markets. As per WazirX Market's Desk, Bitcoin trades near $77,004, with daily technicals broadly neutral despite moving averages flagging short-term resistance.
Michael Burry, the famed investor known for predicting the 2008 financial crisis, has strongly criticized the SEC's proposed tokenized stock trading framework. In a recent post on his Substack, Cassandra Unchained, Burry warned that the plan could create 'a nightmare for investors' and compared the potential impact to a 'Snow Crash cyber-punk future.' The opposition extends beyond individual investors, as Citadel Securities, a major trading firm, sent a letter to the SEC in December 2025 pushing back against the proposal. The firm specifically warned that allowing tokenized stocks to trade 'completely outside of the national market system' would 'fragment liquidity and undermine core investor protections.'
The U.S. Securities and Exchange Commission has reportedly delayed plans to introduce a proposed exemption for tokenized stock trading after exchanges and market participants raised concerns over investor protections and how blockchain-based ownership would function in practice. According to Bloomberg reporting, feedback from exchanges and financial institutions played a key role in the decision to delay the exemption framework. Market participants reportedly raised questions about how tokenized stocks would interact with existing trading systems and regulatory requirements, with concerns about ensuring consistent oversight between traditional equity markets and blockchain-based trading platforms. The latest delay comes as the SEC weighs input from market participants, with the regulator noting that allowing third-party tokens has raised significant concerns about maintaining traditional shareholder protections.
Coinbase Global (NASDAQ: COIN) CEO Brian Armstrong has shared a detailed vision for the future of finance, highlighting that the global financial system still needs major upgrades as the SEC continues delaying plans linked to tokenized stock trading and blockchain-based assets. Armstrong's comprehensive approach addresses multiple areas of financial infrastructure, including tokenization, 24/7 markets, stablecoins, AI & regulation. His vision comes as the crypto exchange continues to navigate regulatory challenges while positioning itself as a leader in blockchain-based financial services. The timing of Armstrong's comments coincides with the SEC's ongoing deliberations over tokenized stock trading frameworks, suggesting that comprehensive regulatory reform may be necessary to address the identified gaps in the current financial system.
Crypto industry executives have backed the SEC's decision to delay the exemption, with several prominent figures supporting the regulatory pause. Carlos Domingo, the CEO of tokenization platform Securities, wrote on X that regulators should ensure the exemption 'applies to the right instruments,' adding that delaying the proposal would be preferable to introducing rules that create operational or legal problems. Separately, Tom Farley, the CEO of crypto exchange Bullish, said on X that the SEC appeared to be recognizing that only public companies should be permitted to issue blockchain-based versions of their shares. Farley posted to X that the SEC was 'realizing that public companies are the only entity who can issue tokens that are a share of stock! Great job delaying and getting this right.'
Industry experts warn that tokenized stock trading could cause significant market fragmentation, with Daniel Labovitz of Green Impact Exchange noting that 'when the same security trades in different markets that aren't connected to each other, the price of assets can diverge, meaning that some buyers will overpay for their token.' The 24/7 trading capability of crypto markets compared to the limited hours of traditional stock markets creates additional concerns about price synchronization. Citadel Securities specifically voiced concerns about 'facilitating the emergence of a ' as the SEC continues to evaluate the implications of allowing tokenized stocks to trade outside traditional market structures.
