Hester Peirce, a member of the US Securities and Stock Exchange Commission (SEC), made an important statement on behalf of the commission. In this statement, evaluations were made against the attempts of crypto exchanges to represent American stocks on blockchain. Recently, platforms such as Robinhood and Kraken have started to offer crypto versions of US stocks to users. Peirce’s statement contains remarkable information about the compliance of these applications with the current legal regulations.
Stocks to Token
Crypto exchanges are continuing to ensure that participants with limited access to the transfer of American stocks on Blockchain. In this process, the aforementioned platforms are working to provide new generation of financial products to investors. However, SEC is closely interested in the question of whether such asset tokensation attempts and transfers are included in the existing securities legislation.
The SEC had previously implemented strict arrangements for the protection of investors and transparency of markets in similar products. In this context, the legal status of digitalized assets through tokensation is not discussed differently from other products in the market. According to American laws, tokenized stocks are still a securities.
Hester Peirce stressed that the securities token in the stock exchanges are subject to the same arrangements as traditional financial products. The Commission said in a statement that new technologies or blockchain applications did not eliminate legal obligations.
Hester Peirce: “Tokenized securities are still considered as securities and are subject to prostration regulations.”
This warning means that crypto -based stocks offered to users of platforms such as Robinhood and Kraken does not change investor rights and obligations. The Commission reminds us of the importance of complying with the legislation of such practices in order to protect investors. It is said that “pressure is over but don’t force your chances”.
RWA’s Future
Recently, Blockchain -based products are becoming widespread in the financial sector. Robinhood and Kraken’s representation of US stocks on blockchain stands out as an innovative financial product in the market. SEC follows this change in detail whether the new products comply with the traditional legislation.
Experts, current securities laws can be applied to blockchain -based digital assets, he says. In this process, it is important to protect the principles of information and transparency for investors. Therefore, legal regulations and audits are trying to progress in parallel with innovative steps in the sector.
The close follow -up of the SEC enters the institution’s task in order to clarify the limits of the facilities offered by crypto asset platforms to its users. Investors should be aware of potential risks and obligations in such innovative products. Over time, we can say that the formation of the legal framework by clarifying the gray areas will be decisive for the future of RWA (tokenizing real world assets).
The US warning of the US Securities and the Stock Exchange Commission on token has been an important agenda for investor protection and market security. The SEC clearly states that block chain -based initiatives are also subject to existing legal regulations. It is emphasized that platforms should adapt to the legal framework while developing innovative products. In this process, it is aimed to observe the rights of investors and to protect transparency in financial markets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
