The semiconductor giant and other companies are challenging a proposed regulatory framework that would allow investors to trade digital representations of publicly listed stock.
The dispute centers on how tokenized shares should be classified, traded and protected under existing securities rules.
Broadcom and its allies argue that the framework could create uncertainty around ownership, settlement, investor protections and the responsibilities of trading platforms.
Regulators and financial firms view tokenization as a potential way to modernize markets, reduce settlement times and broaden access to investment products.
The disagreement reflects a wider clash between established securities regulations and the rapid development of blockchain-based financial instruments.
The outcome could determine whether tokenized versions of major U.S. companies gain a clear path to market or remain restricted by rules designed for traditional brokerage systems. For investors, the decision may shape how digital assets are integrated into mainstream finance while defining who bears responsibility when technology and conventional markets overlap.