The World Federation of Exchanges (WFE) has urged the U.S. Securities and Exchange Commission (SEC) to refrain from allowing crypto companies to bypass regulatory rules. In a letter to the SEC, the WFE expressed concerns over a proposed plan that would enable crypto firms to sell tokenized stocks without regulation, potentially harming investor interests. The WFE emphasized that such exemptions could undermine market integrity and weaken investor protection. SEC Chairman Paul Atkins mentioned that the agency is considering an "innovation exemption" to facilitate new business models for crypto companies. However, WFE CEO Nandini Sukumar cautioned against granting exemptions that could circumvent long-standing regulatory principles. The SEC has published the WFE's letter but has not commented on the matter. James Auliffe, head of the WFE's technical working group, stressed the importance of maintaining a level playing field where both traditional exchanges and crypto platforms adhere to the same rules.