SEC’s Peirce: Tokenization Doesn’t Exempt Securities from Regulation

In a recent statement, SEC Commissioner Hester Peirce emphasized that blockchain technology cannot change the legal status of securities. She argues for encouraging innovation within existing regulatory frameworks to ensure investor protection and transparency. Peirce highlights that tokenized versions of traditional securities like stocks and bonds still remain subject to disclosure requirements and must comply with investor protections. She also cautions against overlooking the increased risks associated with token-based products such as security receipts or swaps, urging clear communication of these risks to buyers.