SEC confirms existing securities laws apply to tokenized assets

The U.S. Securities and Exchange Commission (SEC) has issued new guidance clarifying that existing securities laws apply to tokenized assets, such as stocks or bonds converted into digital tokens on a blockchain, regardless of the technology used. In a statement, the SEC noted that whether a security is represented on-chain or off-chain does not affect the application of federal securities laws, as the fundamental nature of an asset as a security takes precedence over the technology. The commission added that tokenized securities must comply with these laws even if not directly linked to an underlying asset. This announcement is expected to provide asset managers with the regulatory clarity needed to experiment with tokenization technology, DL News reported.