Why did the Securities Transfer Association ask the SEC to limit tokenised securities?

The Securities Transfer Association asked the SEC to limit unauthorised tokenised securities. The group said unofficial tokens could weaken investor protection and create ownership disputes.

What are tokenised securities?

Tokenised securities are shares, bonds or funds recorded on a blockchain. They work like traditional securities but use digital ledger technology.

How is the SEC reviewing tokenised securities?

The SEC is reviewing how tokenised securities should fit under existing securities laws. The review comes as more firms launch blockchain-based investment products.

What does the Securities Transfer Association say about third-party token issuers?

The Securities Transfer Association said third-party issuers could create duplicate ownership records. The group wants authorised transfer agents to keep the official records.

What are the next steps for tokenised securities in the US?

The SEC is reviewing feedback from the industry before deciding whether new rules are needed. Those decisions could shape future tokenised securities markets in the United States.

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Transfer agents urge SEC to curb token issuers

Written by Liezl GambePublished Jul 14, 2026, 5:44 AM

US transfer agents asked the SEC to limit third-party tokenised securities.
The group warned unauthorised tokens could confuse ownership records.
The request comes as the SEC reviews rules for tokenised securities.

The Securities Transfer Association asked the SEC to stop third parties issuing tokenised versions of public securities.

The group said only authorised transfer agents should keep official ownership records for investors.

"Third-party tokenisation creates significant risks to market integrity and investor protection," the Securities Transfer Association said.

The group warned that unofficial token issuers could create duplicate records and settlement problems.

The SEC is reviewing how tokenised securities should fit under existing US securities laws.

More financial firms are launching tokenised shares and funds as blockchain use continues to grow.

The Securities Transfer Association said clear rules could support tokenised markets while protecting investors.