08:00 AM EDT, 08/25/2025 (MT Newswires) -- Coinbase Global ( COIN ) and Robinhood Markets ( HOOD ) shares were down in recent Monday premarket activity after a news story revealed that global stock exchanges are reportedly pushing regulators to crack down on tokenized stocks.

The World Federation of Exchanges, in letters addressed to the US Securities and Exchange Commission's Crypto Task Force, the European Securities and Markets Authority, and IOSCO's Fintech Task Force, said it was concerned that tokens "mimic" equities without providing the same rights or safeguards, Reuters reported Monday, citing a confidential letter.

The report said that blockchain-based tokens created additional risks for investors and could harm market integrity.

Regulators should ensure tokenized assets are not marketed as equivalent to stocks and clarify legal frameworks for their ownership, the report added.

Coinbase and Robinhood did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)