US SEC Commissioner: "Tokenized Securities Are Still Securities… Securities Laws Must Be Followed"

JH Kim

Summary

SEC Commissioner Hester Peirce stated that even if issued in token form, assets that are essentially securities must be subject to federal securities laws.
James Seyffart, a Bloomberg ETF analyst, noted that despite advancements in blockchain technology, the legal nature of underlying assets does not change.
Market participants are urged to recognize that tokenized securities are still securities and must strictly comply with securities laws.

Hester Peirce, a commissioner of the United States Securities and Exchange Commission (SEC) and head of the digital assets task force, expressed her position on security tokenization on her X (formerly Twitter) account on the 9th (local time).

Commissioner Peirce emphasized, "Even if issued in token form, assets that are essentially securities must be subject to federal securities laws."

In relation to this, James Seyffart, a Bloomberg ETF analyst, explained, "The key point of this post is that no matter how advanced blockchain technology becomes, it does not have the magical power to change the legal nature of underlying assets," and added, "Tokenized securities are also securities, so market participants wishing to trade them must strictly comply with all relevant securities laws."