SEC official: Tokenized securities must follow rules
Putting digital versions of stocks on a blockchain doesn’t mean companies can circumvent U.S. securities laws, SEC official Hester Peirce said Wednesday. “As powerful as blockchain technology is, it does not have magical capabilities to change the nature of the underlying asset,” Peirce said. “Tokenized securities are still securities.” Companies including Coinbase, Kraken and Robinhood are considering letting customers trade tokens representing stocks on a blockchain, with some of the products set to be listed overseas. Peirce’s comments are notable because she chairs the agency’s cryptocurrency task force and has opposed regulation that stunts the crypto industry’s growth. Peirce said companies considering tokenized products should talk to the SEC, which is “prepared to develop appropriate exemptions and modernize the rules.”