SEC Official: Tokenized Securities Must Comply with Regulations

According to a report by Jinse Finance, Hester Peirce, an official at the U.S. Securities and Exchange Commission, stated on Wednesday that putting digital versions of stocks on the blockchain does not mean companies can bypass U.S. securities laws. “Although 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.” Some companies, including a certain exchange, are considering allowing clients to trade tokens representing stocks on the blockchain, with some of these products to be listed overseas. Peirce’s remarks are noteworthy as she chairs the agency’s special cryptocurrency task force and opposes regulations that hinder the growth of the crypto industry. Peirce stated that companies considering tokenized products should consult with the SEC, which is “prepared to establish appropriate exemptions and modernized rules.”