SEC Classifies Tokenized Assets as Securities, Prioritizing Protection

The SEC emphasizes that blockchain technology does not change investor protection, leaving the classification of crypto products in question.

On Wednesday, the Securities and Exchange Commission (SEC) asserted that the use of blockchain for recordkeeping does not change the fundamental protections afforded to investors. This statement highlights the agency's stance that regardless of the underlying technology, tokenized assets are primarily viewed as securities.

Despite this clarification, the SEC's announcement leaves some ambiguity regarding how digital assets created specifically for the crypto ecosystem conform to current legal frameworks. This ongoing uncertainty reflects the complex nature of regulating innovative financial products in an evolving market.