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The SEC confirmed tokenized securities are still treated as securities.
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Registration, disclosure, and custody rules continue to apply.
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The guidance supports growing tokenized stock and ETF initiatives.
Format Change, Same Rules
U.S. Securities and Exchange Commission has issued new guidance clarifying that tokenized securities remain subject to existing federal securities laws. While tokenization changes how ownership records are maintained, it does not alter the legal classification of the underlying asset.
The guidance defines a tokenized security as a traditional security represented by a crypto asset, with ownership recorded partially or entirely on blockchain networks.
Issuer and Third-Party Models
The SEC outlined two primary models. In issuer-sponsored tokenization, companies directly integrate blockchain into their ownership records, meaning onchain transfers reflect real security transfers. In third-party models, custodians hold the underlying securities while issuing tokenized entitlements that represent indirect ownership.
In both cases, the SEC emphasized that existing registration and disclosure requirements apply without exception.
Implications for Tokenized Markets
The clarification comes as exchanges and brokers increasingly explore tokenized stocks and ETFs. Platforms such as Robinhood and Kraken have announced tokenized equity products, while the New York Stock Exchange has signaled plans to launch a tokenized securities platform pending approval.
The guidance reinforces regulatory certainty at a time when lawmakers continue working on broader crypto market structure legislation.
