Hester Peirce, head of the Crypto Task Force of the US Securities and Exchange Commission (SEC), said that placing effects on a blockchain “has no magic skills to transform the nature of the underlying asset.”
In one Declaration of July 9Peirce emphasized that tokenized shares, notes or rights “are still effects”, in which emennents, intermediaries and traders must comply with the existing federal legislation in making, selling or transferring this.
Legal obligations
The bulletin of Peirce notes that tokenization can occur in two ways: an issue can be blockchain versions of his own shares, or a depositary can pack and issue effects of third parties.
She warned that the second model introduces the risk of counterparty because the token holder is dependent on the solvency and control of the underlying shares of the custodian.
Peirce urged distributors to consult the SEC division of the “personnel statement” of Corporation Finance on disclosure rights and to meet early employees of the agency when they look for tailor -made exemptions.
She also marked that the rules could classify specific token formats as “receipts for security” or, if they do not miss useful property rights, as “security -based swaps” that are not eliminated by alternating retail trade.
Peirce wrote:
“The same legal requirements apply to versions on and off-chain of these instruments.”
Growing share activities in chains
Peirce’s comments come while Tokenized Equity volumes accelerate. Solana-based stocks of stocks issued under Backed Finance Xstocks Framework achieved a combined market value of $ 48.53 million from July 4.
Dashboard -snapshots of data provider RWA.XYZ show that the total surpassed the $ 50 million on July 6.
Moreover, Xstocks is now moving to other locations. BNB chain announced That the Apple, Tesla and other stocks of stocks as BEP-20 assets will mention in collaboration with Kraken and supported, thereby offering users 24-hour access and Defi-composability.
Market participants largely welcomed clarity. Backed Finance Co-founder Adam Levi said in a statement that the company “has designed Xstocks to reflect the traditional custody of the equity, so the regulatory treatment remains simple.”
Kraken added that Defi integrations on the BNB chain user can post tokenized shares as collateral without changing their securities status.
Separately Bitget integrated Xstocks in the on-chain platform on July 9, so that customers can trade the same tokens from their place accounts without the need for individual portfolios.
Peirce closed closed by signaling openness for modernization and saying that the committee “is ready to work with market participants to make suitable exemptions and modernize rules” where technology exposes Lacunes.