In its press release, the United States Securities and Exchange Commission (SEC) stated that a tokenized security remains a valid security under U.S. law, regardless of how cryptocurrency records may interpret it. The agency seems to opine that, while the form of tokenized securities is changing, these assets will remain within the SEC's jurisdiction.
The new update comes at a time when the agency seeks to clarify rules regarding assets in the country. Last month, the SEC and the Federal Reserve announced key changes to their policies to promote tokenization and institutional participation in general.
According to the agency, there are two types of tokenized securities: “issuer-sponsored tokenized securities” and “third-party sponsored securities.”
In the first type, the issuer directly implements blockchain technology into its ownership structure in such a way that on-chain transfers are actual transfers of securities.
In the same way, the SEC draws an analogy with values issued by third parties, where it is the custodian of the underlying value and issues a symbolic title. The laws remain the same.
The regulation of digital assets is approaching a stage of clarity as lawmakers move towards the final stages. The crypto sector is awaiting the verdict on the review of the cryptocurrency market bill being conducted today by the Senate Agriculture Committee.
Furthermore, the SEC and the CFTC of the U.S. are expected to hold their harmonization talks today. This coincides with the implementation of the president's policies on digital assets. The topics of discussion are expected to include how assets such as tokenized securities will be regulated under the SEC and the CFTC.
Recently, the White House of the United States announced that it would meet with executives from the banking and cryptocurrency sectors to address the stalemate on the CLARITY Act. This occurs while the draft legislation from the Senate Banking Committee remains stalled. This was due to performance issues with stablecoins between both institutions.
