SEC Says Tokenized Securities Remain Under Federal Law Regardless of On-Chain Issuance

The SEC said on Jan. 29 that tokenized securities, including tokenized stocks, remain subject to federal registration, disclosure, reporting and anti-fraud requirements regardless of whether issuance or record-keeping occurs on-chain or off-chain, BlockBeats reports. The agency emphasized substance over form and distinguished tokens directly issued and backed by original issuers from those issued by third parties, adding that even third-party tokens without equity, voting or information rights must comply if they involve securities. BlockBeats noted that some tokenized U.S. stocks have launched outside the U.S., including Robinhood's rollout of over 2,000 such assets in Europe under MiCA, and that industry voices say broader U.S. adoption depends on legislation such as the Clarity Act, which has been delayed.