U.S. SEC Official: Tokenized securities must comply with regulations

U.S. Securities and Exchange Commission official Hester Peirce said on Wednesday that putting digital versions of stocks on a blockchain does not mean that companies can bypass U.S. securities laws. "While blockchain technology is powerful, it does not have the magical ability to change the nature of the underlying asset," Peirce said. "Tokenized securities are still securities." Companies including Coinbase, Kraken, and Robinhood are considering allowing customers to trade tokens representing stocks on the blockchain, with some of these products potentially listing overseas. Peirce's remarks are notable because she is the chair of the agency's special cryptocurrency working group and opposes regulation that hinders the growth of the crypto industry. Peirce stated that companies considering tokenized products should consult with the SEC, which is "prepared to develop appropriate exemptions and modernized rules."