Odaily News Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), said that some token issuers need to come to the SEC for a dialogue. Peirce emphasized that tokenized securities are still securities and market participants must consider and comply with existing securities regulations.
She mentioned that tokens that do not provide holders with legal and beneficial ownership of the underlying securities may be a "security-based swap" product that retail investors cannot trade outside of exchanges. Peirce said the SEC is ready to work with market participants to develop appropriate exemptions and modernize the rules. (Crowdfund Insider)