SEC gives guidance on issuer vs 3rd-party tokenized securities

SEC gives guidance on issuer vs 3rd-party tokenized securities

The US regulator has defined tokenized securities as either issuer-sponsored or third-party models, clarifying that the blockchain format doesn’t exempt assets from federal securities law.

The United States Securities and Exchange Commission has released new guidance on tokenized securities, categorizing assets into two categories to provide more clarity for companies entering the space.

The SEC’s statement on tokenized securities, released on Wednesday, defines the assets as issuer- or third-party-sponsored tokenized securities. 

“Tokenized securities generally fall into two categories: (1) securities tokenized by or on behalf of the issuers of such securities; and (2) securities tokenized by third parties unaffiliated with the issuers of such securities,” the regulator stated

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