SEC member Hester Peirce has issued a warning for companies considering the distribution and trading of tokenized securities.
SEC Warning
On Wednesday, Peirce urged companies to discuss their potential tokenized offerings with SEC officials amid the rising interest in on-chain products. She noted that "tokenized securities are still securities" and that market participants must consider and adhere to federal securities laws when transacting in these instruments.
Robinhood's Strategy
Peirce's remarks came roughly two weeks after Robinhood launched a tokenization-focused layer-2 solution. The company's strategy aims to allow the platform to offer tokenized US stocks and exchange-traded products to investors in Europe. Robinhood also reportedly submitted a proposal to the SEC for a regulatory framework to manage tokenized real-world assets.
Congressional Regulation
Republican lawmakers in the US House of Representatives announced their intention to move forward with consideration of a bill to establish clear regulatory rules for digital assets. The proposed Digital Asset Market Clarity Act may clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in regulating cryptocurrencies in the US.
It is clear that the regulation of tokenized securities will become an important topic for discussion among both companies and regulators in the near future.
