{"id":488824,"date":"2025-07-09T22:15:43","date_gmt":"2025-07-09T21:15:43","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=488824"},"modified":"2025-12-06T04:07:25","modified_gmt":"2025-12-06T04:07:25","slug":"sec-crypto-task-force-head-warns-assets-remain-securities-regardless-of-tokenization","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/sec-crypto-task-force-head-warns-assets-remain-securities-regardless-of-tokenization\/","title":{"rendered":"SEC Crypto Task Force head warns assets remain securities regardless of tokenization"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/cryptoslate.com\/people\/hester-peirce\/\">Hester Peirce<\/a>, head of the US Securities and Exchange Commission's (SEC) Crypto Task Force, said that putting securities on a blockchain &#8220;does not have magical abilities to transform the nature of the underlying asset.&#8221;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a<\/span> <strong><a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/peirce-statement-tokenized-securities-070925\">July 9 statement<\/a><\/strong><span style=\"font-weight: 400;\">, Peirce emphasized that tokenized shares, notes, or entitlements &#8220;are still securities,&#8221; requiring issuers, intermediaries, and traders to adhere to existing federal law when creating, selling, or transferring them.<\/span><\/p>\n<h2><strong>Legal obligations<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Peirce's bulletin notes that tokenization can occur in two ways: an issuer can mint blockchain versions of its own shares, or a custodian can wrap third-party securities and issue receipts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She warned that the second model introduces counterparty risk because the token holder depends on the custodian's solvency and control of the underlying shares.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Peirce urged distributors to consult the SEC's Division of Corporation Finance's &#8220;staff statement&#8221; on disclosure duties and to meet with agency staff early if they seek bespoke exemptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She also flagged that the rules might classify specific token formats as &#8220;receipts for a security&#8221; or, if they lack beneficial ownership rights, as &#8220;security-based swaps&#8221; barred from off-exchange retail trading.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Peirce wrote:<\/span><\/p>\n<blockquote><p><strong>&#8220;The same legal requirements apply to on- and off-chain versions of these instruments.&#8221;\u00a0<\/strong><\/p><\/blockquote>\n<h2><strong>Growing on-chain stock activity<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Peirce's remarks arrive as tokenized equity volumes accelerate. <a href=\"https:\/\/cryptoslate.com\/coins\/solana\/\">Solana<\/a>-based stock tokens issued under Backed Finance's xStocks framework<\/span> <strong><a href=\"https:\/\/cryptoslate.com\/solanas-tokenized-stock-market-more-than-triples-in-two-weeks-to-hit-48m\/\">reached a combined market value of $48.53 million as of July 4<\/a><\/strong><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dashboard snapshots from data provider RWA.xyz show that the total surpassed the $50 million mark on July 6.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, xStocks is now moving to other venues. <a href=\"https:\/\/cryptoslate.com\/coins\/bnb\/\">BNB<\/a> Chain<\/span> <strong><a href=\"https:\/\/www.bnbchain.org\/en\/blog\/bnb-chain-x-kraken-x-xstocks-trade-tokenized-equities-onchain-anytime\">announced<\/a><\/strong><span style=\"font-weight: 400;\"> that it will list <a href=\"https:\/\/cryptoslate.com\/companies\/apple\/\">Apple<\/a>, <a href=\"https:\/\/cryptoslate.com\/companies\/tesla\/\">Tesla<\/a>, and other equity tokens as BEP-20 assets in partnership with Kraken and Backed, providing users with 24-hour access and DeFi composability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Market participants largely welcomed the clarity. Backed Finance co-founder Adam Levi said in a statement that the company &#8220;designed xStocks to mirror traditional equity custody so regulatory treatment remains straightforward.&#8221;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/cryptoslate.com\/companies\/kraken\/\">Kraken<\/a> added that DeFi integrations on BNB Chain will let users post tokenized stocks as collateral without altering their securities status.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Separately, <a href=\"https:\/\/cryptoslate.com\/companies\/bitget\/\">Bitget<\/a> integrated xStocks into its on-chain platform on July 9, enabling customers to trade the same tokens from their spot accounts without the need for separate wallets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Peirce closed by signaling openness to modernization, saying the Commission &#8220;stands ready to work with market participants to craft appropriate exemptions and modernize rules&#8221; where technology exposes gaps.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hester Peirce, head of the US Securities and Exchange Commission&#8217;s (SEC) Crypto Task Force, said that putting securities on a blockchain &#8220;does not have magical abilities to transform the nature of the underlying asset.&#8221;\u00a0 In a July 9 statement, Peirce emphasized that tokenized shares, notes, or entitlements &#8220;are still securities,&#8221; requiring issuers, intermediaries, and traders [&hellip;]<\/p>\n","protected":false},"author":1511,"featured_media":488856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,77968,11,78983,76736],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Crypto Task Force head warns assets remain securities 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