SEC Commissioner Hester Peirce has released a statement on the tokenization of securities, emphasizing that despite the novelty of blockchain applications, they are still subject to existing regulations.
Tokenization as a Novelty
In her statement, Commissioner Peirce noted that tokenization is a new application of blockchain technology. She believes this process can facilitate capital formation and enhance investors' ability to use their assets as collateral.
Regulation of Tokenized Securities
Peirce stressed that tokenized securities still remain securities, and highlighted the importance of compliance with federal securities laws. She called on distributors of tokenized securities to consider their disclosure obligations.
Reflections on the Future of the Crypto Industry
Peirce's statement coincided with the growing interest in tokenization within the crypto industry. Some companies, such as Robinhood, have already begun offering tokenized stocks, providing broader access to startup shares for more investors.
Commissioner Peirce's statement reflects the increasing interest and need for clearer regulatory frameworks in the realm of tokenization. The SEC is ready to work with market participants to adapt to new conditions.
