SEC Moves to Bring Tokenized Securities Under Established Framework
Clarity is emerging from the SEC regarding tokenized securities. Guidance issued by three key divisions late Wednesday places these assets firmly under existing federal securities laws.
The agency’s position is clear: a change in format does not change the fundamental nature of the security. Tokenized versions will be subject to the same registration and disclosure requirements as their traditional counterparts.
The SEC defined a tokenized security as a statutory financial instrument represented by a crypto asset, with ownership recorded on a crypto network. This formal definition is a significant step.
This action is part of a sustained SEC initiative to provide market clarity for crypto assets. Plans for a “token taxonomy” were announced last year to help delineate different digital assets.
The guidance arrives as US lawmakers debate a crypto market structure bill to assign regulatory roles. Meanwhile, exchanges like Kraken and Robinhood are advancing their own tokenized securities offerings.
