US EditionWall Street Takes Tokenized Securities Case to SEC, Flags DeFi Implications
The SEC aims to prevent synthetic equity exposure to retail investors by enforcing existing securities and derivatives rules on third-party tokenized products, clarifying regulatory distinctions.
- On Tuesday, the U.S. Securities and Exchange Commission published a memo after a meeting requested by SIFMA, Cahill Gordon & Reindel LLP, Citadel LLC and JPMorgan Chase & Co., stating tokenization does not change federal securities law application.
- Industry representatives asked the SEC for formal rulemaking Tuesday as five Wall Street firms met with the SEC's Crypto Task Force, urging against broad exemptive relief for tokenized securities.
- The SEC's joint statement classified tokenized instruments into issuer-sponsored tokenized securities, representing true equity ownership, and third-party tokenized stocks, including custodial entitlement arrangements and synthetic instruments exposing investors to risks.
- Regulators signaled protections to preserve investor rules by limiting synthetic-equity products for retail investors and promoting issuer-approved, fully regulated structures in blockchain-based trading models.
- Speaking Wednesday at a SIFMA roundtable, Jamie Selway said some non-equity markets operate 24-by-7 and expanding hours could boost U.S. market competitiveness with shared infrastructure and protocols.
22 Articles
22 Articles
The Divisions of Corporation Finance, Investment Management, and Trading and Markets of the SEC said they are sharing staff criteria on taxonomy related to tokenized values, with the aim of clarifying how federal securities laws apply as onchain activity grows. In the statement, the SEC defines a tokenized value as a financial instrument that meets the legal definition of “security”, but is formatted as, or represented by, a cryptoactive, with p…
The SEC issues a ruling that shakes up the crypto world in terms of regulation - The Cryptocurrency Post
The U.S. Securities and Exchange Commission (SEC) issued a ruling clarifying that assets transferred to a blockchain remain securities when they meet the legal standard. SEC staff made it clear that registration, disclosure, and anti-fraud obligations continue to apply regardless of the technology. The SEC drew a clear line that shook the crypto world, dispelling doubts that the technology doesn’t change the economic substance of a right against…
SEC Defines Issuer Sponsored and Third Party Tokenized Securities Under Existing US Securities Laws
The SEC says tokenized securities fall into issuer sponsored and third party sponsored categories under existing securities laws. Issuer sponsored tokenized securities follow the same rules as traditional securities without changes to investor rights. Some third party tokenized securities may qualify as security based swaps with stricter regulatory requirements. The U.S. Securities and Exchange Commission has defined the application of federal s…
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