SEC Reiterates Regulation of Tokenized Securities

SEC Commissioner Hester Peirce has reiterated that tokenized securities are fully subject to federal securities laws, regardless of being issued or traded on blockchain platforms. She encouraged companies interested in tokenizing assets to engage with the SEC before launching offerings to ensure compliance. Her comments come as platforms like Robinhood and major exchanges explore tokenized equities, and while Congress debates the Digital Asset Market Clarity Act to clarify regulatory oversight. Peirce expressed openness to updating regulatory frameworks in response to technological innovation but stressed the need for ongoing compliance. The SEC maintains that blockchain technology does not alter the fundamental legal status of securities. Ongoing regulatory scrutiny reflects the agency’s consistent approach under the current administration.