SEC Clarifies Regulatory Stance on Tokenized Securities, Affirming Blockchain’s Legal Neutrality
The U.S. Securities and Exchange Commission has drawn a definitive line in the digital sand. Tokenized securities now fall into two distinct categories—issuer-sponsored assets and third-party issued instruments—with no regulatory exemptions for blockchain-based structures. "The format in which a security is issued doesn't affect application of federal securities laws," the SEC declared, signaling that distributed ledger technology neither erases nor creates compliance obligations.
Issuer-backed tokens maintain identical rights and registration requirements as traditional securities, whether recorded onchain or through conventional systems. Synthetic assets, however, may operate in a gray zone—potentially lacking voting rights or transparent issuer details. This guidance strikes at the heart of crypto's regulatory ambiguity while acknowledging blockchain's growing role in capital markets infrastructure.
