Speaking to the American Bar Association, SEC Chairman Gary Gensler recalled that tokenized securities need to be regulated.
Gary Gensler emphasized that many platforms around the world create cryptocurrency tokens and other products, the price of which is calculated on the basis of various securities.
“It doesn’t matter if it is a share token, a stable price token backed by securities, or any other digital product that provides synthetic access to the underlying asset. These platforms, whether decentralized or not, are subject to securities laws and must operate in accordance with our regulation, ”said Gensler.
Similar synthetic assets are being created all over the world. Binance, the largest cryptocurrency exchange, also offered stock token trading, but the platform recently announced that it was no longer trading. This is most likely due to regulatory pressure, although according to the CEO of the financial services provider CM-Equity AG, Binance made such a decision on its own.