SEC Issues Guidance Clarifying Rules for Tokenized Securities

SEC staff divisions issued views on tokenized securities taxonomies, clarifying how federal securities laws apply to onchain finance.
Table of Contents

The SEC’s Divisions of Corporation Finance, Investment Management, and Trading and Markets said that they are providing staff views on taxonomies tied to tokenized securities, aiming to clarify how federal securities laws apply as onchain finance expands.

In the statement, the SEC defines a tokenized security as a financial instrument that meets the legal definition of a ā€œsecurityā€ but is formatted as, or represented by, a crypto asset, with ownership records maintained in whole or in part on one or more crypto networks. It outlines two high-level buckets: issuer-sponsored tokenized securities and third-party sponsored models, noting structures and holder rights can vary.

The divisions said the guidance is meant to help market participants comply and prepare any needed registrations, proposals, or requests for action with the Commission or staff, adding they stand ready to engage on questions as tokenization models evolve.

Source: SEC, ā€œStatement on Tokenized Securities.ā€


Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.

This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.

RELATED POSTS

Ads

Follow us on Social Networks

Crypto Tutorials

Crypto Reviews