{"id":254523,"date":"2025-07-10T21:44:10","date_gmt":"2025-07-10T21:44:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/254523\/"},"modified":"2025-07-10T21:44:10","modified_gmt":"2025-07-10T21:44:10","slug":"tokenized-securities-are-still-securities-sec-peirces-warning","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/254523\/","title":{"rendered":"Tokenized securities are still securities &#8211; SEC Peirce&#8217;s warning!"},"content":{"rendered":"<p>\t\t\t\t\t\t\t\tKey Takeaways<\/p>\n<ul>\n<li style=\"font-weight: 400;\">SEC Commissioner Peirce warned tokenized stock issuers to follow securities law.\u00a0Matt Hougan urged investors to consider crypto stocks or L1 tokens like ETH, SOL, XRP, LINK, etc, to gain exposure to the projected tokenized market boom.\u00a0<\/li>\n<\/ul>\n<p>The tokenized stocks narrative, being able to trade equities on-chain, anywhere, continues to grab attention and different views. <\/p>\n<p>U.S. SEC Commissioner Hester Peirce is the latest to add her voice on the topic.\u00a0<\/p>\n<p>In a <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/peirce-statement-tokenized-securities-070925\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">statement<\/a> on the 9th July, Peirce acknowledged the remarkable impact of tokenized equities, but warned that the products and issuers must still follow federal securities regulations.\u00a0\u00a0<\/p>\n<p>She stated,<\/p>\n<blockquote>\n<p>\u201cAs powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities.\u201d<\/p>\n<\/blockquote>\n<p>Giving an example, she added that token buyers may be exposed to counterparty risks if they buy a tokenized equity from unaffiliated third-party issuers who hold custody of the underlying asset.<\/p>\n<p>In such a scenario, distributors of tokenized tokens must consider disclosure obligations, Peirce wrote.\u00a0<\/p>\n<p><strong>How to ride the tokenized market wave<\/strong><\/p>\n<p>The topic gained traction in July after <a href=\"https:\/\/ambcrypto.com\/is-this-the-future-of-wall-street-robinhood-brings-u-s-stocks-on-chain-in-europe\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Robinhood<\/a> launched several tokenized U.S. equities for E.U. users.\u00a0<\/p>\n<p>In fact, the trading platform issued even tokenized stocks of private firms like OpenAI and SpaceX, which both OpenAI and Elon Musk termed as \u2018fake equity.\u2019<\/p>\n<p>In response, Vlad Tenev, CEO of Robinhood, <a href=\"https:\/\/x.com\/vladtenev\/status\/1940547859532612028\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">said<\/a> that they aren\u2019t \u2018technically equity\u2019 but offer retail investors exposure to private stocks.\u00a0<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/SEC-tokenized-securities-Robinhood.jpg\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-509868\" class=\"wp-image-509868 size-full\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"SEC tokenized securities\" width=\"1600\" height=\"900\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/SEC-tokenized-securities-Robinhood.jpg\"\/><\/a><\/p>\n<p id=\"caption-attachment-509868\" class=\"wp-caption-text\">Source: X<\/p>\n<p>Another player, <a href=\"https:\/\/backed.fi\/\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">Backed Finance<\/a>, rolled out xStocks, bringing tokenized stocks and ETFs across the <a href=\"https:\/\/ambcrypto.com\/category\/solana-news\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Solana [SOL]<\/a> ecosystem and exchanges like Kraken, Bybit, and Gate.\u00a0<\/p>\n<p>From Tenev\u2019s argument, on-chain stocks, in their current form, can be viewed as derivative contracts tracking the prices of the underlying asset without necessarily owning the asset.\u00a0<\/p>\n<p>Pairing these recent updates and the agency\u2019s stance, Bloomberg ETF analyst James Seyffart summed up Peirce\u2019s statement as a \u2018<a href=\"https:\/\/x.com\/JSeyff\/status\/1942995496462664066\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">warning<\/a>\u2019 to Robinhood, Backed, and similar players.\u00a0<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/Screenshot-2025-07-10-122340.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-509869\" class=\"size-full wp-image-509869\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"SEC tokenized securities\" width=\"576\" height=\"266\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/Screenshot-2025-07-10-122340.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-509869\" class=\"wp-caption-text\">Source: James Seyffart\/X<\/p>\n<p>Meanwhile, critics see no sense in tokenized stocks, arguing that adoption could take longer. <\/p>\n<p>This is true for the U.S. and users in developed countries with proper access to capital markets, but some regions don\u2019t enjoy similar and efficient access.\u00a0<\/p>\n<p>Bitwise CEO Matt Hougan <a href=\"https:\/\/x.com\/Matt_Hougan\/status\/1942966686350512590\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">stated<\/a> that despite the projected slow adoption, even a fraction of capital market flows going through blockchain rails is enough to boost these networks.\u00a0<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/Screenshot-2025-07-10-123530.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-509871\" class=\"size-full wp-image-509871\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"SEC tokenized securities\" width=\"572\" height=\"390\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/07\/Screenshot-2025-07-10-123530.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-509871\" class=\"wp-caption-text\">Source: Matt Hougan\/X<\/p>\n<p>Hougan <a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/something-s-happening-here\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">added<\/a> that the tokenized market could grow 4000x in the coming years. As a result, the best way to gain exposure is through L1 tokens or crypto stocks like Robinhood, Coinbase, Circle, etc.\u00a0<\/p>\n<blockquote>\n<p>\u201cThe cleanest way to invest in the rise of tokenization is to buy a basket of the top Layer 1 blockchains and infrastructure plays: Ethereum, Solana, XRP, Chainlink, etc.\u201d<\/p>\n<\/blockquote>\n<p>\t\t\t\t\t\t\t\t\t\t\tNext: <a href=\"https:\/\/ambcrypto.com\/bitcoin-heres-why-112k-could-be-just-the-start-of-btcs-rise\/\" rel=\"prev noopener\" data-wpel-link=\"internal\" target=\"_blank\">Bitcoin: Here\u2019s why $112K could be just the start of BTC\u2019s rise!<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways SEC Commissioner Peirce warned tokenized stock issuers to follow securities law.\u00a0Matt Hougan urged investors to consider&hellip;\n","protected":false},"author":2,"featured_media":254524,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-254523","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114831128381198789","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/254523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=254523"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/254523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/254524"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=254523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=254523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=254523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}