The SEC Releases Security Token Offering Guidance, Bringing It Under Federal Securities Law Oversight

By: theblockbeats.news|2026/01/29 06:00:32
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BlockBeats News, January 29th, according to The Block, the U.S. Securities and Exchange Commission (SEC) has issued guidance provided by the Division of Corporate Finance, Division of Investment Management, and Division of Trading and Markets, clarifying that tokenized securities fall within the federal securities law definition of "securities" and are subject to corresponding registration, disclosure, and other obligations. The SEC categorizes tokenized securities into "issuer-sponsored" and "third-party-sponsored." The "issuer-sponsored" model directly integrates the blockchain into ownership records; the "third-party-sponsored" model involves a third party custodian holding the underlying securities and issuing tokenized interests or issuing "tethered securities" providing synthetic exposure.

This guidance release is part of SEC Chair Atkins' creation of a "Token Classification Framework" as part of an effort to align with market structure legislation being pursued by U.S. lawmakers and to provide a clear regulatory framework for the asset class.

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