US SEC Commissioner: Tokenized securities are essentially securities, and issuers must comply with the information disclosure obligations stipulated in the securities law

CoinRank News: Hester Peirce, a member of the U.S. Securities and Exchange Commission, said in a statement today that tokenized securities are still securities in essence, so market participants must fully consider and strictly comply with federal securities regulations when trading such instruments. Securities tokenization may be implemented by the issuer itself, such as an industrial company or investment company can tokenize its shares; it may also be operated by a custodian that holds securities issued by a third party. Such institutions may issue tokens linked to their custodial securities, or tokenize the security rights enjoyed by investors in the custodian. Buyers of such third-party tokens may face special risks such as unique counterparty risks. Issuers of tokenized securities must fulfill the information disclosure obligations required by federal securities laws. When distributing, purchasing and trading tokenized securities, market participants should carefully evaluate the legal attributes of these securities and their corresponding regulatory requirements. When designing tokenized product plans, market participants are advised to actively communicate with the Securities and Exchange Commission and its staff. When technical characteristics do require adjustments to current rules, or regulatory requirements are outdated and invalid, the SEC is willing to work with the industry to develop reasonable exemptions to promote the regulatory framework to keep pace with the times.