SEC Issues January 28 Guidance Dividing Tokenized Securities Into Two Main Types

On January 28, the US Securities and Exchange Commission issued staff guidance outlining how federal securities laws apply to tokenized securities. The statement divides these products into issuer-sponsored and third-party-sponsored categories, including custodial and synthetic structures, and emphasizes that tokenization does not change their legal treatment. It aims to guide firms and investors on using crypto assets to represent securities while remaining compliant with existing registration and disclosure rules.