Hester Peirce, a representative of the U.S. Securities and Exchange Commission (SEC), stated the need for compliance with securities laws in asset tokenization.
Tokenization and Legal Obligations
In her July 9 statement, Peirce noted that tokenization does not change the legal status of underlying assets. She urged market participants to comply with existing securities laws.
Risks and Investor Rights
Peirce emphasized that tokenized securities are still considered securities, and violations of federal rules can lead to severe penalties. She also highlighted risks associated with counterparties, especially those arising from products created by third parties.
Market Growth of Tokenized Assets
A recent report indicated that the volume of tokenized assets reached $24 billion, a 380% increase over the past three years. Peirce pointed out that this sector's growth raises the responsibilities of regulators.
Hester Peirce's statements underline the importance of legal compliance in asset tokenization and the significance of transparency and accountability from both issuers and investors.
