The U.S. Securities and Exchange Commission (SEC) has clarified that blockchain-based record-keeping systems do not alter the protection of investors’ rights. The SEC emphasized that tokenized assets, whether digital or traditional, fundamentally fall within the category of securities, with their legal identity taking precedence over the underlying technology. This means that maintaining records via blockchain or other advanced technologies cannot weaken investor rights or protections. While cryptocurrencies and tokenized assets are rapidly gaining popularity globally, the SEC’s stance aims to clarify their classification under U.S. financial laws to safeguard investors from fraud and deception. However, many questions remain regarding the legal status of crypto-native products, particularly those existing solely on blockchain, for which specific regulations are yet to be established. This evolving landscape presents challenges for both market participants and regulators in balancing innovation with oversight. The SEC may issue further guidance and develop a dedicated legal framework for crypto assets in the future to enhance investor protection and market transparency, thereby increasing confidence and reducing legal complexities.
Source: decrypt
