Andrew Cuomo, the former governor, is embroiled in a controversy over cryptocurrency as he advocates for tokenized stock exchanges—this new trading concept is drawing criticism from numerous companies that oppose the trading of their shares through cryptocurrencies.
Tokenized stocks link digital tokens to traditional shares, allowing token prices to reflect the value of publicly listed companies. Supporters argue it’s the future of finance, enabling trading around the clock.
In June, Cuomo stepped into the role of co-chairman for OKXICE, a joint venture between the Chinese crypto exchange OKX and the Intercontinental Exchange, which operates the New York Stock Exchange.
However, the tokenized exchange that Cuomo is promoting is already facing significant pushback from various firms.
Companies like Cerebras Systems, AppLovin, and Verizon have expressed their concerns about being part of OKXICE, the new trading platform.
Cuomo left the governor’s office in 2021 amid harassment claims, which he has denied. Following his resignation, he reportedly earned nearly $5 million in 2024 by consulting for various companies. In 2023, he began working as an advisor for OKX. He also recently purchased a $9.6 million estate in the Hamptons.
“Everyone’s buzzing about ‘tokenizing this and that’,” Cuomo remarked to the Wall Street Journal, reflecting on how revolutionary it could be to trade American stocks globally and around the clock, potentially injecting billions into the economy.
In 2025, OKX admitted to violating anti-money laundering regulations and agreed to pay over $500 million in penalties after an FBI investigation.
Concerns have been raised that tokenized stock exchanges can connect to traditional stocks without explicit permission from the companies involved. Instead, these companies are given a 30-day period to opt out of being listed on this platform.
Many conventional firms are against the concept of 24/7 trading, seeing it as a means to bypass regulations.
Traditional trading is bound by regulations that ensure pricing reflects real-time values. However, tokenized exchanges could lead to discrepancies in pricing.
Ken Mahoney, a CEO of an asset management firm, emphasized that a market doesn’t become efficient just because traders can operate continuously; it could lead to wider profit margins and less accurate pricing.
It’s still uncertain if tokenized exchanges will follow the same regulatory standards as traditional ones, especially regarding insider trading or market manipulation. OKXICE claims to have internal checks in place and requires users to verify their identities.
This criticism illustrates the challenges OKXICE faces in gaining wider acceptance.
In September, the Securities and Exchange Commission acted to expedite the tokenized share trading process in the U.S., leading OKXICE to file for launching a 24/7 trading platform.
Supporters believe this new trading format offers efficient means of trading and monitoring share ownership, with the round-the-clock availability being its key advantage.
Barry Plunkett, a tokenization expert, noted that traditional trading halts at night and over the weekends to finalize post-trade operations, and tokenization could streamline these processes by integrating them within each transaction.
However, Mahoney warned that investors might be apprehensive about this new exchange due to the potential added risks it poses amidst existing market volatility.
There’s also a distinction between owning actual stocks via a brokerage and holding perpetual contracts linked to stock prices typical of tokenized exchanges, which raises concerns.
Plunkett pointed out that the main risk lies in tokenized stocks being perceived as claims on unreliable cash reserves. If tokenized cash can’t be seamlessly redeemed or lacks clear backing, it could invite more issues down the line.
Despite facing rejections from several significant firms, OKXICE is optimistic, listing over 60 companies for potential tokenization, including heavyweights like Tesla and Apple.
Cuomo envisions this tokenized exchange as a pivotal financial innovation in five years, expanding beyond just a crypto venue. He anticipates a comprehensive financial technology platform that incorporates AI to facilitate stock trading, payments, and market trend consultations.
