According to ChainCatcher, Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), stated that certain token issuers need to engage in dialogue with the SEC. She emphasized that tokenized securities are still securities, and market participants must comply with existing securities regulations.
Peirce mentioned that not providing holders with legal and beneficial ownership of the underlying securities could be considered a 'security-based swap' product, which retail investors cannot trade outside of exchanges. She stated that the SEC is ready to work with market participants to develop appropriate exemptions and modernize rules.