US SEC Commissioner: Tokenized securities are essentially securities, and issuers must comply with the information disclosure obligations stipulated in the securities law
Odaily News U.S. SEC Commissioner Hester Peirce said in a statement today that tokenized securities are still securities in essence, so market participants must fully consider and strictly comply with federal securities regulations when trading such instruments.
Securities tokenization may be implemented by the issuer itself, for example, an industrial company or investment company can tokenize its shares; it may also be operated by a custodian that holds securities issued by a third party. Such institutions may issue tokens linked to their custodial securities, or tokenize the security rights that investors enjoy in the custodian. Buyers of such third-party tokens may face special risks such as unique counterparty risks.
Issuers of tokenized securities must fulfill the information disclosure obligations required by federal securities laws. Market participants should carefully evaluate the legal attributes of these securities and their corresponding regulatory requirements when distributing, purchasing and trading tokenized securities.
Market participants are advised to proactively communicate with the CSRC and its staff when designing tokenized product solutions. When technical characteristics do require adjustments to current rules, or regulatory requirements are outdated, the SEC is willing to work with the industry to develop reasonable exemption clauses to promote the regulatory framework to keep pace with the times.
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