SEC Commissioner Peirce Spills the Tea on Tokenized Securities – Get Ready to LOL!

Hold onto your hats, folks! Commissioner Hester M. Peirce of the U.S. Securities and Exchange Commission (SEC) has dropped some serious knowledge on tokenized securities in a new statement. 💸

According to an official SEC statement released by Peirce, the regulator’s shadow looms large over the burgeoning sector of tokenized securities. 🕵️‍♀️

“As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities. Accordingly, market participants must consider—and adhere to—the federal securities laws when transacting in these instruments.”

Peirce says that firms distributing tokenized securities must still consider their disclosure obligations to the SEC under federal law and ensure their practices are aligned with the law in order to avoid potential penalties. 🚨

Peirce also says that purchasers of said tokenized securities should also consider the implications of securities laws when reporting their holdings. 📝

Furthermore, the SEC commissioner says the regulator is open to working with the market to optimize regulations. 🤝

“Market participants, as they structure their tokenization product offerings, should consider meeting with the Commission and its staff.

When unique aspects of a technology warrant changes to existing rules or where regulatory requirements are outdated or unnecessary, we stand ready to work with market participants to craft appropriate exemptions and modernize rules.”

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2025-07-10 22:02