SEC Officials: Tokenized Securities Must Comply with Rules

ChainCatcher news, according to Jinshi Data reports, Hester Peirce, an official of the U.S. Securities and Exchange Commission, stated on Wednesday that placing digital versions of stocks on the blockchain does not mean that companies can bypass U.S. securities laws. "While blockchain technology is powerful, it does not have the magical ability to change the nature of the underlying asset," Peirce said. "Tokenized securities are still securities." Companies including Coinbase, Kraken, and Robinhood are considering allowing customers to trade tokens representing stocks on the blockchain, with some products set to be launched overseas.

Peirce's remarks are noteworthy as she is the chair of the agency's cryptocurrency task force and opposes regulations that hinder the growth of the crypto industry. Peirce stated that companies considering tokenized products should discuss with the SEC, which is "prepared to develop appropriate exemptions and modernized rules."