SEC Reaffirms Position: Tokenized Stocks Are Still Securities Under Federal Law

The U.S. Securities and Exchange Commission (SEC) has reiterated that tokenized stocks, despite their blockchain-based format, remain securities subject to federal regulations. The agency's stance comes amid growing interest in digital asset innovation, with Commissioner Hester Peirce emphasizing that technological advancements do not exempt market participants from legal obligations.

Tokenized equities—digital representations of traditional stocks traded on blockchain networks—must comply with disclosure requirements and other securities laws. The SEC's clarification aims to prevent regulatory arbitrage while maintaining market integrity as financial institutions explore tokenization models.

This regulatory posture signals continued scrutiny of crypto-linked financial products, particularly those bridging decentralized finance with traditional markets. Market participants leveraging blockchain for equity trading must navigate existing compliance frameworks despite the novel infrastructure.