Key Takeaways
- SEC Commissioner Hester Peirce says tokenized products are still securities if the underlying asset is a security.
- In a new statement, Peirce clarified that blockchain can’t change an asset’s legal nature.
- She urged companies to engage with the SEC early when exploring tokenization.
Securities and Exchange Commission (SEC) Commissioner Hester Peirce is drawing a clear line in the sand: turning a real-world asset into a blockchain token doesn’t change how it’s treated under U.S. law.
In a statement published July 9, Peirce reiterated that tokenized assets will continue to be regulated based on what they represent, not how they’re wrapped.
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Tokenizing an Asset? It’s Still a Security, Says SEC’s Peirce
“As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset,” she wrote. “Tokenized securities are still securities.”
Her message comes as more companies, from fintech startups to traditional banks, explore tokenization as a way to unlock liquidity and modernize financial markets.
Peirce’s comments aim to clarify the situation for a growing number of firms dabbling in tokenized assets, from tokenized treasuries to tokenized company shares.
She offered a hypothetical: if a company tokenizes its equity, and then a third party creates another product based on that token, the SEC will still look through the wrapper to the original asset.
“Market participants must consider—and adhere to—the federal securities laws when transacting in these instruments,” Peirce said.
She encouraged companies to proactively engage with the SEC to determine whether exemptions or tailored rule changes might apply.
The agency, she added, is open to working with the industry on thoughtful modernization.
Tokenization Trend Hits Its Stride
Peirce’s statement comes as tokenization goes mainstream.
The 2025 bull cycle has seen a surge in interest in real-world asset (RWA) tokenization, from corporate bonds and treasuries to real estate and invoices.
Crypto firms like Coinbase, Kraken, and Robinhood are all investing in the infrastructure to bring traditional assets on-chain.
Here are five major projects leading the tokenization wave:
BlackRock’s BUIDL Fund
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), launched on Ethereum, is the largest tokenized fund globally. It focuses on tokenized U.S. Treasuries and now manages over $2.9 billion.
Centrifuge
Centrifuge, a DeFi pioneer in RWA tokenization, focuses on bringing fixed income and equities on-chain. The project, which has previously collaborated with MakerDAO and Aave, currently has a total value locked (TVL) of around $515 million.
Ondo Finance
Ondo has found its niche in packaging yield-generating assets, like treasuries and corporate debt, and has moved into blockchain-native products. Its flagship product, OUSG, has attracted billions. As of 2025, ONDO’s token has a $1.4 billion market cap.
MakerDAO
MakerDAO has expanded its role beyond DeFi into real-world assets. The protocol backs its DAI stablecoin with tokenized Treasuries and real estate to boost liquidity and reduce volatility.
Propy
Propy specializes in U.S.-based tokenized real estate. It allows users to buy fractional shares in residential and commercial properties—sometimes for as little as $50—bringing real estate investing to a wider audience.
Peirce’s reminder is timely: while tokenization offers efficiency and liquidity, it doesn’t erase the need for compliance.
Whether a digital asset is issued on Ethereum (ETH) or through a broker-dealer, what matters most—at least to the SEC—is what’s underneath.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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