US SEC Commissioner: Tokenized securities still belong to securities and still need to comply with federal securities laws when trading

According to Foresight News, US SEC member Hester M. Peirce issued a statement on tokenization of securities. It includes “Although blockchain technology is extremely powerful, it does not change the nature of underlying assets. Tokenized securities are still securities. Therefore, market participants must consider and comply with the federal securities laws when trading. Non-affiliated third parties holding securities issued by other entities may issue new tokenized securities linked to the securities they hold, or tokenize securities interests held by investors. Investors who purchase such third-party tokens may face unique risks, such as counterparty risks. Distributors of tokenized securities must consider their disclosure obligations under the federal securities laws.

Market participants should consider meeting with the committee and its staff when designing tokenized products. When technical uniqueness requires adjustments to existing rules, or regulatory requirements are outdated or no longer necessary, we are willing to work with market participants to develop appropriate exemptions and modernize relevant rules. "

Disclaimer: The views in this article only represent the author's personal views and do not constitute investment advice of this platform. This platform does not make any guarantees for the accuracy, completeness, originality and timeliness of article information, nor is it liable for any losses caused by the use or trust in article information.