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SEC’s Hester Peirce Cautions Against Legal Oversight in Tokenization
SEC’s Hester Peirce Cautions Against Legal Oversight in Tokenization
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BTCCSquare news:
Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, issued a stark reminder to the blockchain industry: tokenization does not exempt assets from existing securities laws. Speaking on July 9, Peirce emphasized that while tokenized assets have surged to a $24 billion market, their legal classification remains unchanged.
Investors and issuers must navigate the same regulatory framework as traditional securities, with Peirce warning of severe penalties for non-compliance. Counterparty risks loom large, particularly for products created by third parties. Some tokenized securities may even be off-limits to retail investors, underscoring the need for transparency around issuance, underlying assets, and investor rights.
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