SEC Commissioner: Some token issuers need to come forward for dialogue with the SEC

According to a report by Golden Finance, Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), stated that certain token issuers need to come forward and engage in dialogue with the SEC. Peirce emphasized that tokenized securities are still securities, and market participants must consider and comply with current securities regulations. She mentioned that tokens that do not provide holders with legal and beneficial ownership of the underlying securities may be a "securities based swap" product, and retail investors cannot trade outside the exchange. Peirce stated that the SEC is ready to work with market participants to develop appropriate exemptions and modern rules.