Commissioner Hester M. PEIRCE of the US Securities and Exchange Commission (SEC) has clarified the position of the tokenized effects in a new statement.
According to an official sec declaration that Peirce has released, the fast -growing sector of Tokenized effects falls under the shadow of the regulator.
“As powerful as blockchain technology is, it has no magical skills to transform the nature of the underlying asset. Tokenized effects are still effects. Accordingly, market participants must take into account – and meet – the federal securities laws in transacting into these instruments.”
Peirce says that companies that distribute tokenized effects must still take into account their disclosure obligations to the SEC under federal legislation and must ensure that their practices are in accordance with the law to prevent possible fines.
Peirce also says that buyers of the aforementioned tokenized effects must also take into account the implications of securities laws when reporting their participations.
Moreover, the SEC commissioner says that the supervisor is open to working with the market to optimize the regulations.
“Market participants must, while structuring their tokenization product offering, consider meeting the committee and its staff.
When unique aspects of a technology justify changes to existing rules or when the legal requirements are outdated or unnecessary, we are ready to collaborate with market participants to make suitable exemptions and modernize rules. “
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