SEC Official Reiterates Tokenized Assets Remain Securities Under U.S. Law

David Hirsch, head of the SEC's crypto Assets and Cyber Unit, delivered a stark warning at Yale: tokenizing traditional assets like stocks or bonds doesn't exempt them from securities regulations. The blockchain wrapper changes nothing - a security remains a security.

While the crypto industry touts tokenization's benefits of 24/7 trading and reduced costs, Hirsch emphasized technical innovation doesn't override legal definitions. The comparison was blunt: repackaging an asset is like changing a label without altering the product itself.

This stance carries weight as institutional players increasingly explore tokenized finance. The SEC's position creates regulatory clarity but potentially stifles innovation at the intersection of blockchain and traditional markets.