BEARISH 📉 : US SEC confirms tokenized securities fall under regulatory oversight

The U.S. Securities and Exchange Commission (SEC) is addressing tokenized securities, an emerging asset class. These assets will be under SEC oversight, requiring similar disclosure, registration, and compliance as traditional securities.

Key Points

Tokenized securities are defined as financial instruments represented by crypto assets with ownership records maintained on crypto networks.
Big platforms like the New York Stock Exchange are adopting tokenized assets.
Two main categories of tokenized securities identified:
- Issuer-sponsored: Blockchain integrated directly into company records for on-chain transfers.
- Third-party sponsored: Separate entity holds security in custody, issuing a tokenized equivalent.
Third-party "synthetic" structures tokenize securities issued by another party, providing economic exposure without associated rights.
Securitize supports the SEC's guidance, emphasizing the necessity of clear frameworks for scaling tokenized securities.
Robinhood suggests tokenized stocks could help prevent market disruptions similar to the GameStop trading halt.