BiyaPay Analyst: US SEC Throws Cold Water, Tokenization Does Not Possess "Magic" Power
BlockBeats News, July 11th, the U.S. Securities and Exchange Commission (SEC) recently issued a statement on security tokenization, pointing out that blockchain technology has opened up a new model for the issuance and trading of securities, and tokenization may facilitate capital formation and enhance investors' ability to use assets as collateral. However, despite the significant potential of blockchain technology, the SEC emphasizes that tokenization does not possess "magic" powers and cannot change the underlying nature of the asset. Tokenized securities remain securities; therefore, market participants must strictly comply with the relevant provisions of federal securities laws when trading these instruments.
Sometimes, an issuer may tokenize its securities, and investors purchasing these third-party tokens may face unique risks, such as counterparty risk. The issuer of tokenized securities must also fulfill information disclosure obligations under the federal securities law framework and refer to relevant statements recently issued by the U.S. Securities and Exchange Commission's (SEC) Division of Corporation Finance. At the same time, market participants involved in the issuance, purchase, and trading of tokenized securities should also fully consider the characteristics of these securities and the legal and compliance issues they may raise. Although blockchain-based tokenization is an emerging technology, the act of issuing financial instruments representing securities rights is not novel, and the legal requirements applicable to such instruments, whether issued on-chain or off-chain, are the same.
In this rapidly evolving market landscape, BiyaPay also provides users with convenient investment services, helping investors easily participate in the global market. Through BiyaPay, users can trade U.S. and Hong Kong stocks directly using USDT without needing to apply for an offshore account, seamlessly accessing the global stock market. Whether investing in U.S. stocks such as Apple and Tesla or participating in Hong Kong stocks such as Tencent and Alibaba, BiyaPay makes global investing easier and more secure.
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