Finance

Markets Lists Tesla (TSLA) On-chain Amid Regulatory Scrutiny

4 hours ago
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Key Highlights

  • Markets now offers around-the-clock, on-chain trading of synthetic Tesla (TSLA) stock with up to 12x leverage, allowing traders to bypass traditional hours and brokerage accounts
  • The high leverage can amplify gains but also increase risks, as Tesla’s historical volatility
  • The launch comes during a major regulatory debate, highlighted by Coinbase CEO Brian Armstrong’s rejection of the CLARITY Act

The trading platform Markets has launched on-chain trading for Tesla Inc. (TSLA) shares. Announced on January 16, 2026, this launch will allow users to trade a synthetic version of the electric vehicle maker’s stock 24 hours a day, 7 days a week, using leverage of up to 12 times their initial capital.

Markets to Offer On-Chain Trading for TESLA Stock

This system will operate entirely on a blockchain, letting traders use their own self-custody wallets without needing a traditional stock brokerage account. The platform is expected to provide what it calls “permissionless” access by removing the barrier of standard market hours observed on the Nasdaq exchange, which runs from 9:30 AM to 4:00 PM Eastern Time. 

The listing directly responds to growing interest in trading tokenized versions of real-world assets, or RWAs. Tesla, led by CEO Elon Musk, is seen as a major candidate for this model due to its major price volatility. 

Markets, which are built on a Layer-2 blockchain for efficiency, use price oracles to ensure their synthetic TSLA token closely follows the actual stock price. However, during periods of low trading activity, there is a risk of pricing discrepancies known as slippage. 

Tokenized Assets Face Regulatory Scrutiny

The launch by Markets occurs against the backdrop of intense regulatory debate concerning tokenized assets. The sector faces significant challenges from established financial institutions and regulators who argue these products lack essential investor protections. 

On January 14, Coinbase CEO Brian Armstrong publicly withdrew support for a key legislative draft, the Senate’s CLARITY Act. Armstrong declared that the bill was a “de facto ban” on tokenized equities, arguing it grants too much power to the Securities and Exchange Commission (SEC) at the expense of the Commodity Futures Trading Commission (CFTC), and would prohibit DeFi activities. 

In the latest post on X, Armstrong shared his disappointment with a legislative draft. After this, the Senate Banking Committee has decided to postpone its review session. The CLARITY Act was intended to clarify whether digital tokens are securities or commodities and ease banking sector participation. However, Armstrong and others affirmed that its strict application of securities laws would resist innovations like tokenized stocks. This political delay will now stretch regulatory uncertainties. 

Major traditional financial entities have also shared their concerns. In August 2025, the World Federation of Exchanges (WFE), a global industry group for regulated exchanges, urged regulators, including the SEC and the International Organization of Securities Commissions (IOSCO), to impose stricter rules. The WFE argues that tokenized stocks that “mimic” real equities do not confer shareholder rights like voting or dividends. 

By November 2025, the WFE escalated its warnings, asking the SEC not to grant broad exemptions to crypto platforms offering these products.

Also Read: Ethereum ETFs Lead on Jan 15 but Bitcoin Wins the Week

Source: https://www.cryptonewsz.com/markets-tsla-on-chain-amid-regulatory-debate/