Hester Peirce, head of the SEC's crypto taskforce, cautioned market participants that tokenization does not change the security status of underlying assets.
Peirce emphasized the importance of adhering to securities laws for tokenized assets and suggested issuers consult with the SEC to clarify legal obligations.
She highlighted the risks associated with tokenized securities and reminded issuers and purchasers to be aware of regulatory requirements.
The tokenization of real-world assets has rapidly grown, with over $24 billion in tokenized assets reported, and projections suggest a potential market size of up to $30 trillion by 2034.