U.S. SEC Reaffirms Securities Rules Apply to Tokenized Assets

SEC guidance confirms that blockchain-based securities must comply with existing registration, disclosure, and investor protection rules.

U.S. regulators are taking steps to clear up how tokenized securities are treated under existing laws. New guidance confirms that moving assets onto blockchain networks does not change their legal status. As a result, companies and platforms involved in tokenized securities remain subject to standard regulatory requirements.

Regulators Set Clear Expectations for Tokenized Securities Markets

On Wednesday, the U.S. SEC released guidance explaining how federal securities rules apply to tokenized securities. The statement includes coordinated views from the Divisions of Corporation Finance, Investment Management, and Trading and Markets.

According to the agency, tokenized securities remain securities even when ownership records move on-chain. As such, assets issued and transferred on crypto networks will still fall within the SEC’s oversight. Existing registration, disclosure, and investor protection rules still apply.

Moreover, the SEC defined a tokenized security as a financial instrument that is already listed under federal law. Notably, ownership is represented by a crypto asset and tracked on one or more crypto networks.

The recent filing aligns with the agency’s push to define how digital assets fit within existing rules. Earlier comments from SEC Chair Paul Atkins pointed to plans for a formal token taxonomy. Such a framework would aim to separate digital asset securities from other crypto-based products.

Meanwhile, U.S. lawmakers are drafting a market structure bill that would divide oversight duties between the SEC and the Commodity Futures Trading Commission. At the same time, global exchanges continue to prepare to offer services for tokenized equities and debt products.

Market Participants React to SEC Tokenized Securities Guidance

Industry response to the SEC statement has been measured but generally positive. Digital securities firm Securitize said the guidance is “thoughtful” as it supports issuer-backed tokenization and on-chain recordkeeping. Company representatives added that clear rules are needed to allow responsible market growth.

In addition, Coinbase Chief Legal Officer Paul Grewal described the statement as a strong signal for regulated on-chain trading of tokenized equities in the U.S. He noted that clearer expectations could open the door for compliant platforms to operate within the country.

The SEC ended the guidance by inviting further engagement with issuers, platforms, and intermediaries. Regulators added that dialogue would continue as tokenized securities activity expands.

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