[Bitu] Hester Peirce, a commissioner of the U.S. SEC, stated today that tokenized securities are essentially still securities, so market participants must fully consider and strictly comply with federal securities regulations when trading such instruments.
Securities tokenization may be implemented by the issuer itself, for example, industrial companies or investment companies can tokenize their shares; it may also be operated by custodians holding third-party issued securities, which may issue tokens linked to the securities they hold or tokenize the "securities rights" that investors have against the custodian. Purchasers of such third-party tokens may face unique counterparty risks and other special risks.
The issuer of tokenized securities must fulfill the information disclosure obligations stipulated by federal securities law. Market participants should more carefully assess the legal attributes of these securities and their corresponding regulatory requirements when distributing, purchasing, and trading tokenized securities.
Market participants are designing tokens.