Alerts2.4.26
No Magic Here: SEC Statement on Securities Tokenization
Highlights
- The U.S. Securities and Exchange Commission (SEC) harmonizes prior no-action relief, industry guidance, and commentary by confirming that issuers of tokenized securities, no matter their format, must comply with U.S. securities laws.
- SEC’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement outlining their views on “the taxonomies associated with tokenized securities.”
- The Statement explores four primary models of tokenization applicable to securities represented by digital assets.
- Exemptive relief is not coming — existing securities laws apply to tokenized securities.
In July 2025, SEC Commissioner Hester Peirce, in the aptly named Enchanting, but Not Magical: A Statement on the Tokenization of Securities, asserted that: “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities.”
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