SEC official: Tokenized securities must abide by the rules

Hester Peirce, an SEC official, said Wednesday that putting a digital version of a stock on a blockchain does not mean companies can bypass U.S. securities laws. "As powerful as blockchain technology is, it does not have the magical ability to change the nature of an underlying asset," Peirce said. "Tokenized securities are still securities." Companies including Coinbase, Kraken and Robinhood are considering letting customers trade tokens representing shares on a blockchain, with some of those products set to be listed overseas. Peirce's remarks are notable because she chairs the agency's cryptocurrency task force and opposes regulations that impede the growth of the crypto industry. Mr. Pierce said companies considering tokenisation should consult with the SEC, which is "prepared to develop appropriate exemptions and modernised rules".