SEC Speaks Clearly on the Tokenization of Securities
The SEC confirms that tokenization does not alter the legal status of securities or issuers’ obligations.
The U.S. Securities and Exchange Commission has clearly stated that transferring assets to a blockchain does not change their legal status. If a financial instrument qualifies as a security, it remains a security regardless of the technology used to issue or record it.
A joint position issued by three SEC divisions confirms that tokens representing securities are still subject to federal securities laws. It makes no difference whether ownership records are maintained in a traditional database or directly on a blockchain network.
The SEC explains that issuers may offer tokenized securities as a separate category or alongside traditional shares. However, if a token grants the same rights and has the same characteristics as a conventional instrument, it may be treated as the same class of security, regardless of the form in which it is recorded.
Experts point out that while the SEC emphasizes technological neutrality, current regulations are not fully adapted to markets operating entirely on blockchain infrastructure. In their view, tokenization does not change the law itself, but it fundamentally transforms how financial market infrastructure functions.
