SEC Commissioner Hester Pierce cautions traditional financial institutions to adhere to securities laws when venturing into blockchain tokenization of real-world assets.
She advises market participants to consult with the commission and its staff before offering tokenized securities to ensure regulatory compliance.
Despite the growing interest in tokenizing real-world assets by traditional financial institutions, Hester reminds that tokenized securities are subject to federal securities laws.
Hester's statement underscores that tokenized securities are still considered securities and must comply with existing regulations, indicating a cautious approach to this emerging trend.