SEC Commissioner Hester Peirce emphasized that tokenized securities are still subject to federal securities laws. She warned that tokens backed by custodial assets and issued by third parties may carry counterparty risks or face legal uncertainty. In some cases, such tokens might be classified as “receipts for securities” or “security-based swaps,” potentially making them ineligible for retail trading.

SEC Commissioner Hester Peirce emphasized that tokenized securities are still subject to federal securities laws.

She warned that tokens backed by custodial assets and issued by third parties may carry counterparty risks or face legal uncertainty. 

In some cases, such tokens might be classified as “receipts for securities” or “security-based swaps,” potentially making them ineligible for retail trading.
sec.gov
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