SEC Eyes Oversight of Tokenized Stocks: Broker Custody Preferred
The U.S. Securities and Exchange Commission (SEC) has indicated its preference for broker-led custody of tokenized equities, even when these assets exist onchain. According to reports, the SEC is seeking to ensure that tokenized stocks operate within existing U.S. market safeguards. This suggests a cautious approach by the SEC, prioritizing traditional financial intermediaries over crypto-native self-custody solutions for managing tokenized securities. The development highlights the ongoing regulatory considerations surrounding the intersection of blockchain technology and traditional financial assets.
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