SEC Commissioner Stresses Tokenization Does Not Alter Securities Regulations

The U.S. Securities and Exchange Commission (SEC) has reaffirmed that blockchain technology will not redefine the legal obligations associated with securities, according to Commissioner Hester Peirce. Over the past few weeks, Peirce has consistently emphasized that the tokenization of assets—including stocks, bonds, and investment instruments—does not alter their legal classification under U.S. securities law [1]. Her position highlights the SEC’s commitment to enforcing existing regulatory frameworks, regardless of how digital or innovative the delivery mechanism may be [2].

Peirce reiterated that a tokenized asset retains its legal identity and is subject to the same disclosure and compliance requirements as its traditional counterpart. For example, a tokenized stock remains a stock and must adhere to the same investor protections and transparency rules [3]. She also warned of the risks associated with tokenized receipts and security-based swaps, stressing that such products must be clearly communicated to investors [4].

This stance is not new for Peirce. Earlier in July, she released a statement titled “Enchanting, but Not Magical,” clarifying that while blockchain technology changes how assets are delivered, it does not change their legal nature [5]. She criticized efforts to use tokenization as a means of evading compliance, reiterating the SEC’s expectation of full transparency from market participants [6].

Peirce advocates for direct engagement with companies exploring tokenization, suggesting that regulatory sandboxes and active dialogue can foster innovation while maintaining investor safeguards [7]. As the head of the SEC’s Crypto Task Force, she has stated that the commission will apply its existing rules to oversee new developments in the tokenized asset space, without waiting for new legislation [8].

Her comments align with a broader trend in the U.S. financial sector, where interest in blockchain-based settlement and tokenized real-world assets is growing. While Peirce acknowledged the potential benefits of such technologies, including faster transactions and broader market access, she emphasized that regulatory clarity must remain a priority [9]. The lack of clear guidelines has, in many cases, hindered progress in the tokenization space [10].

Peirce’s approach reflects a balance between supporting innovation and maintaining investor confidence. Despite her reputation as a proponent of blockchain, she remains firm in her belief that regulatory certainty is essential. She has clarified that the SEC does not seek to determine which tokenization models will succeed but rather ensures that all participants operate within established legal boundaries [11].

Source:

[1] https://coindoo.com/blockchain-wont-change-securities-laws-according-to-secs-hester-peirce/

[2] https://coinpedia.org/news/secs-hester-peirce-on-tokenized-assets-compliance-first-but-markets-will-pick-winners/

[3] https://pymnts.com/news/regulation/2025/sec-commissioner-says-regulator-willing-to-work-with-tokenized-real-world-assets/

[4] https://coinglass.com/ru/news/533227

[5] https://www.nytimes.com/by/matthew-goldstein?page=7

[6] https://thecryptobasic.com/tag/ripple/

[7] https://www.fastbull.com/news-detail/why-6500-can-be-a-launching-pad-for-news_9100_0_2025_3_2127_3

[8] https://coindoo.com/

[9] https://aol.com/finance/secs-atkins-wants-crypto-rules-172606285.html