As interest in tokenized stocks in the US grows, SEC Commissioner Hester Peirce provides clarifications on the legal status of such securities.
Hester Peirce's Statement on Tokenized Securities
Hester Peirce noted that tokenized securities still hold the status of securities and are therefore subject to federal securities laws. "No matter how powerful blockchain technology is, it does not have the ability to magically change the nature of the underlying asset," Peirce stated.
Plans of Cryptocurrency Companies
While awaiting final clarifications, companies like Coinbase and Kraken are intensifying plans to launch tokenized stock products in the US. If they receive SEC approval, they could offer blockchain-based stock trading, creating competition for traditional brokerage firms.
Senate Discussion on Digital Asset Regulation
Peirce's comments followed a Senate Banking Committee hearing on digital asset regulation. Senator Elizabeth Warren noted that the Clarity Act, a bill expected to be voted on soon in the House of Representatives, may contain language allowing non-cryptocurrency companies to tokenize their assets to avoid SEC oversight.
Hester Peirce's clarification emphasizes the importance of compliance with securities laws for tokenized assets. Potential changes could impact the future of the tokenized stock market in the US.
