SEC Clarifies Tokenized Securities Rules Amid Blockchain Finance Expansion

The U.S. Securities and Exchange Commission issued landmark guidance Wednesday, delineating how federal securities laws apply to tokenized financial instruments. The MOVE establishes a regulatory framework as traditional finance increasingly adopts blockchain infrastructure.

Key divisions of the SEC—Corporation Finance, Investment Management, and Trading and Markets—jointly clarified distinctions between securities tokenized by issuers versus third parties. The guidance provides compliance roadmaps for both models, resolving market confusion about whether blockchain-based securities require novel regulatory treatment.

By affirming existing securities laws apply regardless of technological format, the SEC aims to balance innovation with investor protections. Market participants now have clearer parameters for submitting registrations and proposals involving tokenized assets, potentially accelerating institutional adoption of blockchain settlement systems.