Latest news with #HesterPeirce
Economic Times
5 days ago
- Business
- Economic Times
Cryptocurrency Live News & Updates : Preview of Congress' Upcoming Crypto Week
12 Jul 2025 | 01:35:14 AM IST U.S. lawmakers are poised to vote on significant crypto legislation next week, potentially bringing a stablecoin bill to President Trump's desk before the August recess. As Congress gears up for 'Crypto Week' from July 14 to July 18, the House of Representatives is set to vote on pivotal legislation, including the Digital Asset Market Clarity Act and the GENIUS Act, which aims to regulate stablecoins. This legislative push comes amid a broader trend of institutional investment in Bitcoin, highlighted by DDC's $100 million partnership with Animoca Brands to enhance its Bitcoin strategy. Meanwhile, SEC officials are navigating the complexities of tokenized securities, with Hester Peirce emphasizing that tokenized assets still fall under existing securities laws. Trump's crypto holdings are also in focus, as the WLFI token's potential transition to a tradable asset could significantly impact his digital asset profile. The upcoming votes and discussions signal a critical moment for the crypto industry, as bipartisan support appears likely for these bills, which could establish a clearer regulatory framework and foster innovation in the sector. Show more
Gizmodo
6 days ago
- Business
- Gizmodo
The SEC Is Crashing the Digital Stocks Party
For years, the promise of blockchain technology has captivated the financial world, hinting at a future where traditional assets are transformed into nimble, digital 'tokens.' This vision, as the U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce puts it, is 'enchanting, but not magical.' She just sent a clear message to anyone hoping blockchain would free them from financial regulation: not so fast. Commissioner Peirce acknowledged the promise of tokenization, the process of turning real-world assets like stocks into blockchain-based digital tokens. But she warned that, no matter how futuristic it sounds, the same old rules still apply. 'Tokenized securities are still securities,' Peirce said in a statement. 'The same legal requirements apply to on- and off-chain versions of these instruments.' Her statement comes amid a frenzy of experimentation in tokenized finance. Firms like BlackRock, JPMorgan Chase, and Robinhood Markets are exploring how to tokenize everything from stocks and treasuries to real estate and private credit. The hype is real: blockchain-based markets promise 24/7 trading, faster settlement, better transparency, and a radically cheaper financial system. But the SEC is reminding everyone that innovation doesn't mean exemption. If you're creating or selling tokenized securities, even if you're just wrapping real assets in a digital shell, you're still subject to decades-old laws governing how financial instruments are issued, traded, and disclosed. The goal of federal securities laws is to protect investors and ensure fair, orderly markets. The End of the Stock Market As We Know It Tokenization refers to the creation of digital tokens on a blockchain that represent ownership of real-world assets. These can be as simple as company shares or as complex as bundles of loans. Think of it as taking something traditional—like a Tesla stock—and putting it into a blockchain wallet so it can be traded like cryptocurrency. But not all tokens are created equal. Some are issued directly by the company (like a tokenized share of a public company), while others are created by third parties who hold the real assets and issue their own tokenized version. According to Peirce, those third-party tokens carry 'unique risks,' especially for retail investors who may not actually own the underlying asset. 'A token could be a 'receipt for a security,' which is itself a security but is distinct from the underlying security,' Peirce explained. Or worse, it could qualify as a 'security-based swap,' which are typically used by sophisticated investors and are heavily regulated, often restricted from being traded by everyday people ('retail persons') off of regulated exchanges. If a token falls into this category, it could face severe trading restrictions. Tokenization could reshape how regular people invest, borrow, and access wealth. But it also raises serious questions: Who actually owns these tokenized assets? What happens when a crypto firm collapses or loses customer funds? And what protections do Main Street investors have? Tokenization could make markets faster and more accessible, even allowing people to own fractions of stocks and assets. But Peirce's statement throws cold water on the idea that blockchain makes all that risk-free. The SEC's message is that innovation must come with compliance. Peirce, one of the more crypto-friendly voices at the agency, still made it clear: 'The process of issuing an instrument representing a security is not new.' Whether it lives on-chain or off-chain, it's still under the SEC's jurisdiction. Peirce encouraged firms to engage with the SEC early and often if they want to build tokenized products legally. She also hinted that the agency is open to modernizing outdated rules or creating exemptions, but only if firms play by the rules. For now, the crypto and finance industries have been put on notice. Tokenized finance isn't a legal gray zone. It's Wall Street on-chain. The message is clear: the future of finance will be built on innovation, but also on accountability.
Bloomberg
7 days ago
- Business
- Bloomberg
SEC's Peirce Says Tokenized Securities Must Comply With Rules
Putting digital versions of stocks on a blockchain doesn't mean companies can skirt US securities laws, the Securities and Exchange Commission 's Hester Peirce said Wednesday. 'As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset,' Peirce said in an online post. 'Tokenized securities are still securities.'
CNA
09-07-2025
- Business
- CNA
SEC's 'crypto mom' says tokenized securities are still securities
NEW YORK :A top U.S. securities regulator known for her supportive stance on the cryptocurrency industry said on Wednesday that new models for trading securities known as "tokenization" must still meet regulations for other securities. Hester Peirce, a Republican commissioner on the Securities and Exchange Commission who has been nicknamed "crypto mom," said in a statement: "As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities." Tokenizing equities is a process by which shares of a company are converted into a digital token, similar to how cryptocurrencies are traded. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities. Such tokens could be created by the security issuer itself, or by an entirely unrelated third party. Anyone who buys a third-party token could face unique risks, she said. Crypto firms and others have been increasingly discussing the prospect of tokenizing securities as a new way to facilitate trading. Coinbase recently told Reuters it was seeking a U.S. green light from the SEC to offer blockchain-based stocks. SEC Chairman Paul Atkins, also a Republican, said in a CNBC interview last week that the agency should encourage innovation when asked about the prospect of tokenizing securities.
Reuters
09-07-2025
- Business
- Reuters
SEC's 'crypto mom' says tokenized securities are still securities
NEW YORK, July 9 (Reuters) - A top U.S. securities regulator known for her supportive stance on the cryptocurrency industry said on Wednesday that new models for trading securities known as "tokenization" must still meet regulations for other securities. Hester Peirce, a Republican commissioner on the Securities and Exchange Commission who has been nicknamed "crypto mom," said in a statement: "As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities." Tokenizing equities is a process by which shares of a company are converted into a digital token, similar to how cryptocurrencies are traded. Instead of holding the securities directly, investors hold tokens that represent ownership of the securities. Such tokens could be created by the security issuer itself, or by an entirely unrelated third party. Anyone who buys a third-party token could face unique risks, she said. Crypto firms and others have been increasingly discussing the prospect of tokenizing securities as a new way to facilitate trading. Coinbase (COIN.O), opens new tab recently told Reuters it was seeking a U.S. green light from the SEC to offer blockchain-based stocks. SEC Chairman Paul Atkins, also a Republican, said in a CNBC interview last week that the agency should encourage innovation when asked about the prospect of tokenizing securities. Critics say the new technology could become a way to evade SEC oversight and expose retail investors to new risks.
