SEC Clarifies Rules for Tokenized Securities as Blockchain Adoption Grows
The U.S. Securities and Exchange Commission (SEC) has issued new guidance clarifying how federal securities laws apply to tokenized securities. The regulatory body confirmed that blockchain-based financial products remain fully subject to existing frameworks, regardless of their technological format.
Issuers may utilize distributed ledger technology for recordkeeping, but disclosure, reporting, and investor protection requirements remain unchanged. The statement highlights potential risks in custodial and synthetic tokenization models, where intermediaries could introduce additional vulnerabilities.
Market participants have welcomed the regulatory clarity as tokenization expands from experimental phases into mainstream financial applications. The SEC signaled willingness to collaborate with firms as tokenized equities progress toward regulated on-chain trading environments.
