U.S. securities regulators are signaling that tokenization does not provide a regulatory shortcut for issuers or intermediaries seeking to repackage traditional financial instruments on blockchain networks. In a staff statement released this week, officials said tokenization alters the technical format of a security but leaves its legal identity intact under federal securities laws. Stocks, bonds, […]
Senior representatives from major Wall Street firms and industry groups have pressed U.S. regulators to resist carving out special exemptions for tokenized securities, arguing that assets traded on blockchain rails should remain subject to the same federal securities laws as traditional instruments. Executives and legal advisers from firms including JPMorgan, Citadel, and industry body SIFMA […]
The U.S. Securities and Exchange Commission has issued a no action letter that effectively allows the Depository Trust Company to proceed with a blockchain based pilot program for the tokenization of securities entitlements. The decision provides regulatory assurance that the SEC would not recommend enforcement action if the DTC operates the program as described, marking […]
