SEC’s Cryptocurrency Leader Hester Peirce Issues Serious Warning to the Crypto Sector

As efforts to introduce tokenized stocks in the US gain momentum, US Securities and Exchange Commission (SEC) Commissioner Hester Peirce issued a statement clarifying the legal framework in this area.

Peirce noted that tokenized securities still have securities status and therefore remain subject to federal securities laws.

“No matter how powerful blockchain technology is, it does not have the ability to magically change the nature of the underlying asset,” Peirce said in a written statement today, adding, “Tokenized securities are still securities.” Related News: BREAKING: Much Anticipated FED Minutes Have Been Released - Here Are All the Details Peirce's statement comes as cryptocurrency companies like Coinbase and Kraken are intensifying their plans to launch tokenized stock products in the U.S.

If these companies receive SEC approval, they would be able to offer blockchain-based stock trading, putting them in direct competition with traditional brokerage firms.

Peirce's comments came on the heels of a Senate Banking Committee hearing on digital asset regulations.

Senator Elizabeth Warren, the committee's top Democrat, argued that the Clarity Act, a bill expected to be voted on soon in the House of Representatives, contains language that could allow non-cryptocurrency companies to tokenize their assets to avoid SEC oversight. *This is not investment advice.

Continue Reading: SEC’s Cryptocurrency Leader Hester Peirce Issues Serious Warning to the Crypto Sector.

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